Solana is making its mark once again as the majority of cryptocurrencies turn green in terms of their price movement, crypto investment products have finally seen a net inflow of capital for the first time in the past six weeks.
According to the new CoinShares report, most of this inflow is attributed to Bitcoin, as the majority of the altcoin market registered outflows last week. But as Bitcoin starts to regain inflow momentum, Solana has continued to shine, trumping altcoin investment products with inflows of $5 million.
Solana Digital Investment Products Leaves Ethereum In The Dust
Solana has been on an epic run this year and has done better than most altcoins in terms of interest from institutional investors. The crypto continues to reiterate its climbing position among investors with 27 weeks of inflows and just 4 weeks of outflows this year. But while altcoins like Solana and XRP have also had inflows in recent weeks, Ethereum, in particular, has struggled to gain momentum from institutions.
CoinShares’ data reveals investor interest in Ethereum is rather low. Although Ethereum is still the dominant platform for DeFi and smart contracts, its investment products registered outflows of $1.5 million last week, taking its trend of outflows for the 6th consecutive week.
Other altcoins like Litecoin, XRP, and Tron had no net inflows/outflows, but short Bitcoin and Multi-asset investment products also registered outflows of $1.5 million and $1.4 million, respectively.
SOL price holds above $24 | Source: SOLUSD on Tradingview.com
Factors Influencing The Inflow
The report from Coinshares attributes the inflows into Bitcoin to a reaction to a combination of positive price momentum and fears over US government debt prices, considering most of the inflow came in late in the week. Amid these influences, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors.
For one, Solana has had one of the best TVL performances in recent months, overtaking Ethereum in terms of growth. Data from DefiLlama shows Solana’s total value locked just reached a new high from the year at $336.77 million. This represents a growth of 64% from its $205.11 million TVL at the beginning of the year.
Data from Coinmarketcap shows Solana has benefited the most from the ongoing bullish momentum in the wider crypto market. As a result, Solana managed to overtake Dogecoin and Cardano to become the seventh-largest crypto by market cap.
BREAKING: $SOL FLIPS $DOGE AND $ADA IN MARKET CAP pic.twitter.com/RXKCBQinIJ
— DEGEN NEWS 🗞️ (@DegenerateNews) September 30, 2023
At the time of writing, Solana has increased by 24.13% in a 7-day timeframe. Solana’s current price action is approaching resistance at $24.5, which could force another downside correction.
Featured image from Guarda Wallet, chart from Tradingview.com