Wed, 11/15/2023 – 15:48
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Solana’s SOL gained over 18% in the last 24 hours to outperform top cryptos on an otherwise dull trading day.
SOL has surpassed $63, a level last seen in May 2022. Daily trade volumes increased by more than 70% to over $3.7 billion, up from an average of $2 billion at the start of November.
SOL is up 150% since Oct. 1 but still down 77% from its all-time high, according to crypto research firm Kaiko, which highlighted a surprising factor for the continued Solana boom.
In a tweet, Kaiko observed that SOL’s blistering rally has continued with limited liquidity. It further adds that liquidity in USD terms is at its highest level since the collapse of FTX.
However, liquidity has been going downward in native units, indicating that market makers (MMs) are maintaining a stable level of liquidity.
SOL prices plummeted in November 2022 after FTX collapsed, but hopes about Solana have revived following the end of Sam Bankman-Fried’s trial.
Meanwhile, wallets linked to the bankrupt crypto exchange FTX have transferred out over $102 million in SOL tokens to crypto exchanges in recent months. Moving to exchanges may indicate selling, but the impact was reversed on Solana’s price, which has hitherto risen.
Institutional investments in SOL tokens have also increased in recent weeks. Shares of Grayscale Solana Trust (GSOL) hit a nearly 900% premium to the spot SOL held in each share last week, indicating demand for the token.
According to the latest CoinShares report, digital asset investment products saw inflows totaling $293 million in the past week, bringing a seven-week run of inflows past the $1 billion mark. Solana saw further inflows totaling $12 million.