Solana maintained its position among altcoins, seeing inflows more than any other cryptocurrency other than Bitcoin last week. Institutional investment products have seen eight straight weeks of inflows, with some cryptocurrencies receiving more inflows than others.
According to the new CoinShares report on digital asset funds, the majority of this money has gone into Bitcoin products. crypto continues to attract investor interest in light of recent developments in the crypto industry.
Solana gains momentum among institutional investors
Solana has seen incredible growth this year, with its native SOL token up over 465% year-to-date. At the same time, Solana-related investment products have attracted major interest from institutional investors, with inflows now exceeding $135 million this year.
According to Coin Shares, digital asset investment funds saw a total inflow of $176 million last week. Of this total inflow, $155 million was invested in Bitcoin, with inflows over the past eight weeks now representing 3.4% of total assets under management. As a result, the total inflow has now reached $1.32 billion this year, although well below 2021 and 2020, which recorded $10.7 billion and $6.6 billion, respectively.
The latest report from CoinShares reveals that the weekly inflow into Ethereum Products fell 93.27%, from $49.1 million to $3.3 million. Solana, on the other hand, grew almost 10%, from $12.4 million to $13.6 million.
Other altcoins also struggled to receive significant inflows, with Litecoin and XRP only seeing $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 influx
Most cryptocurrencies saw a brief period of consolidation last week, but this did not carry over to investment products. The Coinshares report notably attributes the inflows to Bitcoin to a strong bullish sentiment in connection with imminent approval of a US spot-based Bitcoin ETF. This is especially evident as Short-Bitcoin outflows saw another outflow of $8.5 million last week.
Amid these influences and a 101% price rally last month, Solana has seen growth in other aspects of its ecosystem that may have attracted institutional investors. On the one hand, Solana has had one of the most impressive performances on TVL over the past few months.
Data from DeFiLlama puts the total TVL on the network to $576.44 million, an increase of 77.62% over the past month. The platform also revealed a peak in SOL trading volume on decentralized exchanges over the past week.
According to on-chain intelligence platform Messari, Solana is now the hub for decentralized physical infrastructure network (DePIN) projects.
What is the value of a SOL?
– Messari (@MessariCrypto) November 20, 2023
Solana (SOL) is currently trading at $56.27 and investors are still expecting a strong breakout above $60.
SOL price at $56 | Source: SOLUSD on Tradingview.com
Featured image from CNBCTV18, chart from Tradingview.com