Solana price is projected at $ 300 when Grayscale launches SOL-backed fund

Solana price is projected at $ 300 when Grayscale launches SOL-backed fund

Solana (SOL) maintained its intraday gains on November 30 when Grayscale Investments, the world’s largest cryptocurrency fund, announced that it would add SOL to its product line.

The digital asset class is growing, and along with it, we are expanding our offerings. Get exposure to $ SOL, the native token of the @Solana network, through Grayscale’s new #Solana Fund.

SOL at $ 300 in the future?

SOL rallied to nearly $ 217.50 after rising more than 6.50% intraday. The Solana token gains came primarily as part of a recovery move that began on November 28, in which it rallied over 20% testing a reliable multi-month rising trend line as support (near $ 190), as shown in the chart below.

SOL / USDT daily price chart featuring Ascending Trendline support. Source: TradingView

The latest round of buying near trend line support also helped push SOL above the 23.6 Fibonacci line (~ $ 204) of its Fibonacci retracement chart, pulled from the low of $ 23.22 to the high of $ 23.22. USD 260.69. As a result, the $ 260 price level appears as the last line of defense between SOL and a new record.

“SOL, although it seems exhaustion, it is still possible USD 300 and something (this season),” he said. @fomocapdao, an independent market analyst, adding:

“It depends on everything [el ecosistema], that is to say TVL, NFT, Tabasco, commercials of announcements “.

“Continuous appetite” by Solana

Grayscale’s decision to add Solana to its portfolio of services promised to make SOL visible to more high-net-worth and institutional investors.

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This is mainly due to Solana’s incredible growth as a blockchain project in 2021. Layer one protocol emerged as a rival to the Ethereum smart contract platform after providing users with one of the fastest and lowest cost public ledgers.

Solana price is projected at $ 300 when Grayscale launches SOL-backed fund
Solana’s blockchain performance versus others. Source: Reddit

Solana’s ecosystem attracted more than 500 projects spread across decentralized finance (DeFi), non-fungible tokens (NFT), Web3, and other sectors, with 1.2 million active users on the network. Among them is Serum, a decentralized derivatives exchange backed by FTX and Alamada Research of billionaire Sam Bankman-Fried.

As a result, SOL’s price, which functions as a fee and participation token within the Solana ecosystem, increased by more than 10,700% year-over-year, with its circulating market capitalization peaking at about $ 77.93 billion in November.

Solana price is projected at $ 300 when Grayscale launches SOL-backed fund
SOL’s circulating market capitalization. Source: Messari

Now worth more than $ 70 billion, Solana remains the fourth largest blockchain by market capitalization, and Grayscale CEO Michael Sonnenshein noted that there is already a “continuing appetite” among investors to gain exposure in the blockchain project.

The statements came after Coinshares, a London-based asset management company, reported net capital inflows worth more than $ 250 million in SOL-based exchange-traded products (ETPs).. This month alone, Solana’s ETPs attracted around $ 42.2 million, Coinshares underscored in its Nov.29 report.

Despite calls for SOL to hit $ 300 below, the token still faces downside risks due to some general issues, including excessive valuations on longer-term charts and potential for network outages.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.

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