Solana has maintained its lead among altcoins, recording more inflows than any other cryptocurrency apart from Bitcoin last week. Institutional investment products have seen inflows for eight consecutive weeks, with some cryptocurrencies receiving greater amounts of inflows than others.
According to a new CoinShares report on digital asset funds, the majority of this money went into Bitcoin products as the crypto continues to attract investor interest in light of recent developments in the crypto industry.
Solana gains momentum among institutional investors
Solana has been performing incredibly this year, with its native SOL token rising by over 465% since the beginning of the year. Additionally, Solana-related investment products have attracted great interest from institutional investors, with inflows now exceeding $135 million this year.
According to CoinShares, digital asset investment funds recorded total inflows of $176 million last week. Of this total inflows, $155 million moved into Bitcoin, with inflows over the past eight weeks now representing 3.4% of total assets under management. As a result, total inflows this year have now reached $1.32 billion, although well behind 2021 and 2020, which had $10.7 billion and $6.6 billion, respectively.
The latest report from CoinShares shows that weekly inflows into Ethereum products fell by a staggering 93.27% from $49.1 million to $3.3 million. Solana, on the other hand, rose nearly 10% from $12.4 million to $13.6 million.
Other altcoins also struggled to receive major inflows, with Litecoin and XRP only recording inflows of $0.4 million and $0.5 million respectively. Uniswap and Polygon saw minor outflows of $0.55 million and $0.86 million respectively.
Factors affecting inflow
Most cryptocurrencies went through a brief period of consolidation last week, but it did not feature in investment products. The CoinShares report attributes the inflows into Bitcoin to strong bullish sentiment specifically related to the impending approval of spot-based Bitcoin ETFs in the US. This is especially evident, as short-Bitcoin outflows saw another $8.5 million outflow last week.
Between these effects and the 101% price increase last month, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors. For example, Solana has delivered one of the most impressive performances on TVL in recent months.
The total TVL on the network is $576.44 million, an increase of 77.62% over the past month, according to data from DeFiLlama. The platform also revealed a surge in SOL trading volume on decentralized exchanges last week.
According to on-chain intelligence platform Messari, Solana is now the hub of decentralized physical infrastructure network (DPIN) projects.
What is the value of SOL?
– Messari (@MessariCrypto) 20 November 2023
Solana (SOL) is currently trading at $56.27 and investors are still expecting a strong break above $60.
SOL Price $56 | Source: SOLUSD on tradingview.com
Featured image from CNBCTV18, chart from tradingview.com