Solana (SOL) seems to attract attention institutional investorswith this Solana fund delivering a premium of no less than 870% SOL’s bullish momentum. These investors’ interest in the SOL token is not surprising, as on-chain metrics suggest it is still undervalued and a parabolic rise may be in store.
Grayscale Solana Trust trades at a premium
Per facts On Grayscale’s website, the Grayscale Solana Trust (GSOL) is currently trading at $317 per share, which represents a significant premium of the current price of SOL. The premium had risen to 870% by March 8, when GSOL traded at $540. Shares in the fund are designed to track the value of stocks The price of SOLallowing institutional investors to have exposure to the token without holding it.
The difference between GSOL’s share price and SOL’s price may be due to the fact that institutional investors are limited in the means to gain exposure to SOL. As such, a fund like GSOL could see its price rise exponentially (just like now) whenever there is a rise institutional question for the SOL token.
The institutional interest in SOL is also evident NewsBTC’s recent report that crypto-focused asset manager Pantera Capital is raising money to buy $250 worth of SOL. Investors are likely to take advantage of this opportunity as these SOL tokens will reportedly be sold at a fixed price of $59.95, meaning there is an opportunity to make significant profits from the deal.
SOL still highly undervalued
Crypto analyst Hansolar suggested that SOL was still undervalued when he named that the crypto token may not take off until BTC and ETH strike new all-time highs (ATH). He also predicted that the SOL could rise as high as $600 bull cycle. Meanwhile, the argument that SOL is undervalued is supported by the fact that it is still far from its ATH of $260.
Crypto tokens are known to generate a new ATH on every bull run, and chances are that this time will be no different for SOL. In addition, SOL and the Solana Network are gaining a lot of traction in this cycle, which should contribute to more price appreciation for the SOL token.
Solana recently recorded an ATH in the count new addresses every day, with many users included in the ecosystem. This increased interest in the network is partly due to the network DeFi landscapethat competes with Ethereum, and the current meme coin frenzy on Solana, which has attracted investors.
At the time of writing, SOL is trading at $152, up more than 2% in the past 24 hours, according to facts from CoinMarketCap.
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Featured image from ByteTree, chart from Tradingview.com
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