Dubai, November 22, 2023 — BIT, a professional cryptocurrency exchange specialising in options trading, has launched options trading for Solana (SOL), one of the top tier blockchain protocols supporting decentralised financial markets. 

In collaboration with trusted market maker Orbit Markets, this strategic move marks the expansion of options trading on BIT, which already includes BTC and various altcoins such as ETH, XRP, TON, ADA, FIL, and BCH.

Solana rises again

SOL, currently the sixth largest cryptocurrency by market cap, has emerged as a leading competitor to Ethereum. During the 2021 bull market, Solana gained significant traction as one of the key projects leading the ‘DeFi Summer’ narrative as it offered a vision similar to Ethereum but with faster and more cost-effective transactions.

The Layer 1 token has seen a remarkable year-to-date surge, surpassing 400%, supported by heightened institutional demand, a surge in developer activity, an expanding user base, and the shadow of FTX receding. It is also the fastest growing top 10 chain in terms of Total Value Locked (TVL) at a 100% increase over the last 30 days according to DeFiLlama.

SOL now consistently ranks among the most traded altcoins on crypto exchanges, outpacing many other top market cap altcoins.

Justin Buitendam, Global Head of Institutional Sales at BIT, comments: "Institutional demand for Solana is on the rise, with the token increasingly considered a viable alternative to Ethereum. BIT is addressing this demand with the introduction of options trading, catering to sophisticated trading needs.”

Recent positive performance indicators for Solana include a glowing recommendation from Cathie Wood on CNBC in November. Wood highlighted Solana's impressive adoption, low-cost platform, high transaction speeds, and the utility it continues to generate for end users. The network has addressed previous downtime issues and is now positioned to excel.

Institutional Demand for SOL

Recent data suggests a surge in institutional investments into SOL tokens. In mid-November, the Grayscale Solana Trust (GSOL) shares hit a premium of nearly 900% to the spot SOL, indicating significant demand among regulated funds. 

This premium was partially driven by the market shaking off the network’s relationship to crypto exchange FTX’s founder Sam Bankman-Fried. Concerns about the FTX estate selling tokens en masse have proven to be overblown. Recent actions by the bankruptcy committee overseeing FTX improved sentiment by staking over 5.5 million SOL on the Solana network in mid-October, temporarily dampening fears of a sell-off. 

Exchange-traded products representing an index of altcoins saw a 26% increase in October, with ETPs holding SOL specifically experiencing a 172% growth in assets under management earlier this year. Notable institutional partnerships, such as Visa's support for Solana in stablecoin settlements, further underscore the growing institutional interest in Solana.

Background on Solana

Solana is a highly functional open source project that leverages blockchain technology's permissionless nature to provide decentralised finance (DeFi) solutions. One of its key innovations is the proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain, offering greater scalability and usability.

The combination of two consensus mechanisms makes Solana a unique phenomenon in the blockchain industry.

With lightning-fast processing times, Solana has become a rival to Ethereum, challenging the dominant smart contract platform historically preferred by financial institutions. Solana's hybrid protocol ensures decreased validation times for transactions and smart contract execution, attracting both small-time users and enterprise customers. 

By enabling SOL options trading on a trusted exchange like BIT, we are laying the foundation for more reliable clearing processes and the enforcement of standardised contracts.

This not only helps in risk mitigation but also guarantees a level playing field for all participants. It equips every stakeholder in the Solana ecosystem with an extra resource to handle and hedge their portfolio risks through advanced trading strategies.

BIT, as one of the key players leading the expansion of altcoin options market, is at the forefront of this rapidly growing segment. Its aim is to create a safer, more transparent, and efficient marketplace for altcoin options trading.

-ENDS-

About BIT

BIT is a comprehensive cryptocurrency exchange designed for professional use, featuring advanced risk management and fund efficiency supported by Portfolio Margin and Unified Margin. BIT was launched in August 2020 as an affiliate of Matrixport, a prominent crypto financial services company.

For more information: visit bit.com, follow BIT on LinkedIn, X,  and Telegram, or contact vip@bit.com