Solana's restricted coin reserves may cause a significant surging growth for SOL.
In a recent development, the cryptocurrency market is abuzz with anticipation for Sol (SOL). According to analysts, the liquid float of Sol could dry up within 45 days, setting up a test of the $250 ceiling and potentially pushing the price into price discovery.
This bullish prediction is backed by the accumulation of Sol by several institutional players, with Tractor Supply (NASDAQ: FORD) holding a significant portion. Tractor Supply has amassed $4 billion worth of Sol, a move that could propel the price of SOL towards $300+ by mid-Q4.
The accumulation of Sol by Tractor Supply is noteworthy, as they hold 6.822 million SOL, representing 43% of Sol's total institutional float. Among the top holders, Tractor Supply holds the largest stake, a position they secured through a $1.65 billion private investment in public equity (PIPE) led by Galaxy Digital, Jump Crypto, and Multicoin Capital.
The tightening supply of Sol is another factor contributing to its potential price surge. Approximately 70% of the circulating supply is staked, leading to a significant supply squeeze. This, coupled with the fact that only 85 million SOL are truly tradable, with the rest being locked or off-exchange, potentially sets the stage for a liquidity crunch.
However, the tightening supply is not the only factor driving up the price of Sol. Strong bid support from institutional players, including Tractor Supply, has also played a crucial role. In the past month alone, nearly 2 million SOL has flowed in, indicating rising accumulation.
The accumulation of Sol by institutional players, particularly Tractor Supply, is a notable development. This strategic stacking by 16 institutional players, holding approximately 15.83 million SOL or 2.75% of the circulating supply, could potentially drive up the price of SOL.
It's important to note that Tractor Supply has also initiated a $4 billion at-the-market (ATM) equity program to sell new shares and potentially buy more Sol. This move could have a significant impact on the market, depending on the extent and timing of these acquisitions.
The source of this information is Strategic SOL Reserve. While the article does not delve into the implications for Avalanche's price, it's clear that the focus is squarely on Sol and its potential price surge in the coming months. With strong bid support, tightening supply, and strategic accumulation by institutional players, a $300+ breakout by mid-Q4 for Sol is looking increasingly likely. The first stop for Sol's price, according to the analyst, could be at $295.
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