IMPORTANT POINTS:
- Rise of Solana: According to CoinShares, Solana (SOL) registers 31 million in inflows, consolidating itself as the favorite altcoin of institutional investors in 2023.
- Ethereum Loses Ground: Ethereum faces outflows for the seventh consecutive week, positioning itself as the least favored altcoin compared to Solana.
- Movement in Bitcoin: Despite the dynamics of altcoins, Bitcoin sees significant inflows, registering eight-figure movements in the week ending September 29.
Preference for Solana in the Crypto Market
Crypto asset manager CoinShares has revealed in its latest “Digital Asset Fund Flows Weekly” report that a rival to Ethereum (ETH) is capturing the attention and capital of institutional investors. According to the report, Solana (SOL) has recorded inflows worth 31 million so far this year.
Positive Trend for Solana
The firm emphasizes that Solana’s upward trend shows no signs of slowing down. Specifically, in the week ending September 29, Solana continued to shine in the altcoin space. The report details: “Despite the lack of activity in the altcoin space, Solana continues to stand out, with inflows of $5 million. This marks its 27th week of inflows and only 4 weeks of outflows during the year, consolidating itself as the most appreciated altcoin of the year.” In contrast, Ethereum experienced outflows for the seventh consecutive week, accumulating a total of 1.5 million, which positions it, according to CoinShares, as the least favored altcoin in this period.
Bitcoin Situation and Recent Trends
While Solana and Ethereum dominate conversations in the altcoin world, Bitcoin (BTC) is not far behind. During the week ending September 29, Bitcoin recorded eight-figure inflows. More broadly, CoinShares noted that digital asset investment products saw combined inflows of around 21.2 million over the same period, this being a notable move as it is the first time such a trend has been seen in a month and a half.
The firm adds: “At the beginning of the week, it looked like we would be facing another week of departures. However, the inflows, which were seen more towards the end of the week, appear to be a reaction to positive price momentum, concerns over US government debt, and recent debates over government funding. “Despite this recent rally, investment volumes remain low in the overall cryptocurrency market.”
