Solana has held its stance among altcoins, registering inflows more than any other cryptocurrency besides Bitcoin last week. Institutional investment products have witnessed consecutive eight weeks of inflows, with some cryptocurrencies receiving a greater amount of inflows than others.
According to the 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 on an incredible run this year, with its native SOL token up over 465% since the beginning of the year. At the same time, investment products tied to Solana have attracted major interest from institutional investors, with inflows now topping $135 million this year.
According to CoinShares, digital asset investment funds registered a total inflow of $176 million last week. Out of this total inflow, $155 million went into Bitcoin, with the last eight weeks of inflows now representing 3.4% of the total assets under management. As a result, the total inflow has now reached $1.32 billion this year, although well behind 2021 and 2020, which saw $10.7 billion and $6.6 billion respectively.
CoinShares’ latest report reveals that weekly inflow into Ethereum products dropped by an astounding 93.27% from $49.1 million to $3.3 million. Solana on the other hand, increased by almost 10% from $12.4 million to $13.6 million.
Other altcoins also struggled to receive major inflows, with Litecoin and XRP only registering 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 Influencing The Inflow
Most cryptocurrencies went through a brief period of consolidation last week, but this didn’t roll over into investment products. The report from Coinshares attributes the inflows into Bitcoin in particular to a strong bullish sentiment related to the impending approval of a spot-based Bitcoin ETF in the US. This is particularly evident, as Short-Bitcoin outflows saw another outflow of $8.5 million last week.
Amid these influences and a 101% price surge last month, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors. For one, Solana has delivered one of the most impressive performances on TVL in the most recent months.
Data from DeFiLlama puts the total TVL on the network at $576.44 million, a 77.62% increase in the past month. The platform also revealed a spike in SOL trading volume on decentralized exchanges in the past week.
According to the on-chain intelligence platform Messari, Solana is now the hub for Decentralized Physical Infrastructure Network (DePIN) projects.
What is in the value of a SOL?
Despite a tough market, @solana has outperformed major crypto assets, becoming the hub for DePIN projects and releasing major product announcements like Firedancer. pic.twitter.com/7ouHN089Wd
— Messari (@MessariCrypto) November 20, 2023
Solana (SOL) is currently trading at $56.27 with investors still anticipating a strong break above $60.
SOL price at $56 | Source: SOLUSD on Tradingview.com
Featured image from CNBCTV18, chart from Tradingview.com
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