Solana Wins Institutional Investors’ Trust Over Bitcoin And Ethereum, Here’s How


Solana Wins Institutional Investors’ Trust Over Bitcoin And Ethereum, Here’s How


Solana is in the lead again, as the majority of crypto assets investment products witnessed net outflows of investments last week, bringing an end to 11 consecutive weeks of inflows. This wasn’t surprising though, as most cryptocurrencies went through a brief period of consolidation and profit-taking last week. 

According to the latest report from CoinShares, digital asset investment products saw minor outflows of $16 million last week, with the majority of the outflows coming from Bitcoin. However, despite the outflows, Solana picked up steam, with its net inflow jumping 240% percent from the previous week. 

Solana Wins Trust From Institutional Investors

Digital asset investment products have been on a roll since the last week of September, with inflows increasing as a result of anticipation of the approval of spot Bitcoin ETFs in the US. The majority of these weekly inflows have gone into Bitcoin, with altcoins like Solana and Ethereum performing excellently from time to time.

However, last week told a different tale, despite trading activity registering an average of $3.6 billion for the week, higher than the yearly average. Data from CoinShares shows Bitcoin products dropped from $19.8 million inflows the previous week to outflows of $32.8 million. In the same vein, Ethereum also witnessed outflows of $4.3 million. 

According to the report, this was mostly due to institutional investors taking profit, rather than a change into a bearish sentiment. In terms of geographical location, the US saw the most outflow of $18.3 million while Germany followed behind with $9.7 million. 

Solana, on the other hand, remained strong like it has been since October to dominate the institutional space. The crypto asset received $10.6 million in institutional inflows, up 240% from $3.1 million in the previous week. As a result, its year-to-date inflows have now crossed over $156 million. 

Cardano and XRP products also saw minor positive movements, registering inflows of $3 million and $2.7 million respectively. 

Cardano Continues To Shine

The institutional inflow into Solana is a representation of the crypto asset’s performance this year. Solana has been on an incredible run, with its native SOL token up over 520% since the beginning of the year. Solana recently crossed over $75 again and technical analysis shows the crypto is now on its way to revisit the $100 mark.

At the time of writing, Solana is trading at $75.91, its yearly high, and is up by 24% in the past 30 days. DeFi TVL on the Solana blockchain is also up by 73% in the same timeframe. According to a crypto analyst, a Solana $90 price target is now in sight.



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