While many altcoins have been on a fascinating path over the past few years, not many have matched the dramatic journey that Solana has been on.
For years, Solana has looked to stand out from its peers through its blockchain’s proof-of-history mechanism, helping it power fast transactions. However, Solana’s history hasn’t always been sunshine and rainbows.
Recently, the CoinShares team broke down the history of Solana’s performance over the last few years, going over the cryptocurrency’s highs and lows alike. The CoinShares post notes that solana was one of the cryptocurrencies that was more drastically affected by the collapse of FTX in November of 2022. As CoinShares notes, FTX had deep ties to Solana at the time that the exchange collapsed. As the chart below illustrates, FTX’s downfall further deepened Solana’s price woes at the time.
However, the chart also shows that Solana endured through 2023, in part through partnerships and a loyal community. Towards the tail end of that year, CoinShares pointed out that Solana saw a significant comeback when Visa expanded its own settlement capabilities onto the Solana blockchain.
This development proved to be a massive turning point for the altcoin. Not only did the Visa partnership showcase the advantages of the Solana framework, but it added institutional credibility to Solana’s blockchain.
The good news doesn’t stop there, either. Solana’s institutional credibility has continued to grow as financial giants like BlackRock and Franklin Templeton have expanded funds onto the Solana network.
Solana’s success story showcases the importance of what altcoin exposure can do to a portfolio. Sure, altcoins can see some risk when there’s a drawdown, but betting on the right altcoin can unlock significant returns and value over the long-term.
Tap Into Solana Through DIME's Diversification
The CoinShares Altcoins ETF (DIME) helps advisors and investors gain access to altcoins through the ETF structure. DIME invests in a selection of ETPs that provide exposure to a variety of different altcoins. This includes solana, cardano, avalanche, and toncoin, among others.
Taking a diversified approach to altcoin investing can help produce a more fine-tuned risk profile. By doing so, DIME investors can enjoy the benefits of altcoin rallies, while being less exposed if an individual altcoin undergoes underperformance.
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
