SOL Primed For Massive Price Eruption To $500 As Solana Records ‘Dramatic Increase’ In Institutional Demand

A recent survey conducted by Coinshares has revealed burgeoning institutional interest in altcoins, with Solana’s SOL leading among emerging favourites.

The Digital Asset Fund Manager Survey, which polled 64 investors managing a combined $600 billion in assets under management, found that SOL has witnessed a remarkable surge in allocations from institutional investors.

Institutions Are Bullish On Solana

In an April 24 report based on Coinshares’s survey, the investment firm’s head of research, James Butterfill, emphasized the broadening exposure to altcoins among investors, positing:

“Investors have been broadening their exposure to altcoins, with Solana seeing a dramatic increase in allocations.”

Roughly 15% of participants said they had invested in SOL, a notable increase from CoinShares’ January survey, which showed no institutional investments in the market’s fifth-largest altcoin.

Moreover, Solana was ranked third in terms of having the “most compelling growth outlook”, with almost 15% of surveyed investors agreeing — a rise from 10% from the same survey back in January.

The Coinshares survey also pointed to Solana’s growing institutional acceptance, with approximately 14% of respondents voicing optimism about its growth trajectory, up from about 12% in the previous survey. “Investors are more optimistic for Solana,” the report said. This rising interest in SOL comes amid the crypto’s recent technological improvements and expanding market presence.

Meanwhile, Bitcoin still leads the pack, with over 25% of respondents having invested in the premier crypto, followed by Ethereum with just under 25%. BTC remains the preferred digital asset, with 41% of investors remaining bullish on its growth outlook— albeit a small decline from prior surveys. On the contrary, Ether has witnessed a drop in investor confidence as only 30% of respondents are optimistic about its future, down from 35%.

SOL Ready For Another Bull Rally?

Solana’s native token, SOL, is down today, falling approximately 3.2% to trade for $142.65. Multiple factors have negatively affected SOL’s price performance in recent days, including one of Solana developers’ revelation that the blockchain network’s outage issues have not been resolved.

The SOL price tends to track Bitcoin and the broader crypto trends. According to CoinGecko data, Bitcoin’s price now hovers at just under $63,900 per coin. That’s a drop of over 1.2% in 24 hours and a 13.2% dip from its March all-time high of nearly $74K. 

It’s uncertain how long this crypto market downturn will last. The SOL price bulls, however, might initiate more bullish momentum on the back of a meme coin frenzy, pushing the price higher to reach the $500 mark in the upcoming weeks.