An altcoin based on Solana (SOL) is experiencing a surge as a prominent crypto investment firm has revealed a significant stake in the project.
As per a recent announcement from Multicoin Capital, the firm, which manages $1.4 billion in assets, has established a substantial position in Drift Protocol (DRIFT).
Drift is an open-source decentralized exchange (DEX) that facilitates transparent and non-custodial trading.
Multicoin Capital states,
“We have accumulated a significant position across our funds – both liquid and venture – in DRIFT, the native token of Drift, a derivatives decentralized exchange (derivatives DEX) on the Solana blockchain. This position was built over the past few years through private and public market investments.”
On the day of the announcement, which did not disclose the investment amount, Drift experienced a remarkable increase, peaking at $0.56.
At the time of writing, Drift is priced at $0.55, reflecting an increase of nearly 19% over the past 24 hours.
Multicoin’s evaluation of Drift indicates that the digital asset has the potential to rise to $3.58.
“We believe the Drift protocol is set for further growth as users and liquidity increasingly flow towards Drift and Solana. Furthermore, we think that individuals globally, particularly in developing nations, are seeking synthetic access to all assets, and DeFi (decentralized finance) derivatives represent the most innovative and inclusive products for them.
According to our valuation model and market assumptions delineated in the report, we assign DRIFT a base case value of $3.58, which is over 7 times its current market price.”
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