- Despite a major network outage last week, the price of Solana’s SOL token has shown resilience, posting a 10.4% gain over the last 24 hours.
- Institutional investors remain bullish on Solana, with inflows into SOL investment products hitting $134 million last week, more than double that of Ethereum and Avalanche products.
- Solana’s consistently low transaction fees, in the $0.001 to $0.003 range, continue to attract new users and projects compared to much higher Ethereum fees.
Solana Price Action Defies Expectations
Despite the network going down for 5 hours on February 6th, SOL has posted a 10.4% gain over the last 24 hours. This price action seems to indicate traders are unfazed by the incident.
Several factors may be contributing to SOL’s continued strength:
- The wider crypto market is in an uptrend, with the total market cap up 0.45% to $1.6 trillion. Leading cryptocurrencies like Bitcoin and Ether are also flashing green.
- Optimism is growing around upcoming Bitcoin and Ethereum catalysts like the halving, ETFs, and network upgrades. This positive sentiment may be lifting SOL too.
Institutional Investors Remain Bullish on Solana
According to the latest report from CoinShares, inflows into SOL investment products hit $134 million last week. This was more than double the inflows into Ethereum and Avalanche products.
Data shows institutional investors are increasingly favoring Solana over rival layer 1s. The network’s fast speeds and low fees remain compelling despite the outage.
Solana’s Total Value Locked Recovers
Per DefiLlama, Solana’s total value locked (TVL) has recovered to $16.5 billion as of February 7th. DEX volume on Solana has also held up well, coming in 2nd only to Ethereum over the past week at $6.25 billion.
Solana’s Consistently Low Fees Attract New Users
Transaction fees on Solana remain extremely low, in the $0.001 to $0.003 range. With Ethereum fees much higher, Solana’s low costs continue to attract new adopters and projects.