Why is Solana (SOL) price up today?

Solana price continues to show strength, despite this week’s network outage.

Solana (SOL) is witnessing a price recovery after a five-hour network outage on Feb. 6 had investors worried that a sharp sell-off would follow. Generally, SOL traders appear to be unfazed by the incident and the price has recovered, gaining 1.04% in the last 24 hours. 

Is SOL’s show of strength in tandem with the wider crypto market action or are there other factors pushing the altcoin’s price higher?

Global crypto market cap reaches $1.65 trillion

Most top-cap cryptocurrencies were flashing green on Feb. 7 with the total crypto market capitalization gaining 0.45% to reach $1.6 trillion, according to data from CoinMarketCap.

Bitcoin (BTC) remained flat above $43,000 while Ether (ETH) gained 1.25% to trade at $2,371. Potentially bullish crypto market price catalysts are the approaching Bitcoin halving event, the rising optimism of spot Ethereum ETFs being approved in May, and the Dencun upgrade on the Ethereum network.

Solana investment products saw $13.4 million in weekly inflows

Reporting from CoinShares highlighted an uptick in institutional investor inflow to SOL-based investment products.

Investment in these products has outpaced those of rival layer 1 tokens such as Ether and Avalanche (AVAX).

According to CoinShares’ reporting, SOL investment products welcomed $13.4 million in inflows, surpassing Ethereum and Avalanche, which saw $6.4 million and $1.3 million outflows respectively last week.

The report goes on to detail, a total of $707.8 million of investor funds flowing into crypto products last week, bringing the total global assets under management to $53 billion.

Digital asset investment products saw large inflows totalling US$708m last week!

This brings year-to-date inflows to US$1.6bn and total global assets under management to US$53bn.

Trading volumes in ETPs fell to US$8.2bn (compared to US$10.6bn the prior week), but… pic.twitter.com/phsy5zjnTf

— CoinShares (@CoinSharesCo) February 5, 2024

Related: Solana network down: Validators act to restore service

Solana’s total value locked metric reflects investors’ activity

Data from DefiLlama shows Solana’s TVL increased to $1.65 billion on Feb. 7.

Additionally, Solana’s decentralized exchange volume remains among the top this week. DEX volume on Solana over the last week stands at $6.25 million, coming in second to Ethereum’s $7.582 billion.

Solana’s lower traction costs continue to attract new users, particularly those hunting for new airdrops. Data from Solscan shows that Solana’s fees remain consistently low between $0.0001 and $0.0003, which is considerably lower than transaction fees on Ethereum.