Solana resumed its strong uptrend on Sunday, Oct. 5, as the crypto market jumped, its stablecoin supply hit a record high and the staked SOL ETF inflows jumped.
Summary
Solana (SOL) token jumped to a high of $236, its highest level since Sept. 21, and up 150% from its yearly low. Its strong fundamentals and technicals suggest that the coin may jump to a record high this year.
Aside from new stablecoin legislation, a major catalyst for the SOL price is that stablecoin growth is accelerating. According to DeFi Llama, the total supply in the ecosystem jumped to a record high of $15 billion. That’s up sharply from the year-to-date low of $5.4 billion.
USD Coin boasts over $10.76 billion in assets. It is followed by Tether’s USDT, which has over $2.45 billion PayPal USD, with $614 million in assets.
Another major catalyst for the Solana price is the ongoing growth of the REX-Osprey SOL + Staking ETF, whose ticker symbol is SSK. This fund, which was launched in July, has accumulated over $404 million in assets under management.
SSK’s growth is a sign that American institutional investors are optimistic about Solana and other top cryptocurrencies. For example, Bitcoin and Ethereum ETFs have had over $74 billion in inflows since last year.
Therefore, this performance is a sign that investors will buy other Solana ETFs once they are approved by the Securities and Exchange Commission, possibly this month.
SOL price will also benefit from the Alpenglow upgrade, which will happen in the coming months.
The daily timeframe chart shows that the SOL price has rebounded in the past few days. This rebound started after it moved to a low of $190, its lowest level on Sept. 26. Its lowest level aligned with the lower side of the ascending channel.
Solana price has jumped above the 50-day and 100-day Exponential Moving Averages and is approaching the upper side of the ascending channel at $253. A move above that level will point to more gains, potentially to a record high of $295.
