Solana’s Growing Attraction to Institutional Investors
Despite the cryptocurrency’s seemingly tough market, it continues to be attractive to investors, with last week being no exception. Solana is in second place, only behind Bitcoin, in terms of the inflows of investment products. According to a new CoinShares report on digital asset funds, these funds saw total inflows of $176 million, with $155 million going into Bitcoin. The last eight weeks have witnessed consistent influxes into cryptocurrencies. At the same time, underlining its growing potential, Solana’s SOL token has gained over 465% in value, making it one of the most attractive propositions for institutional investors this year.
Solana Continues to Make Waves
With institutional investors pumping over $135 million into investment products tied to Solana in 2021, the altcoin continues to ride the wave of success. Although the height of inflows is yet to reach 2020 and 2021 levels, this year’s growth is showing Solana’s potential. CoinShares’ latest data shows Bitcoin as the top pick, representing 3.4% of the total assets under management, while Ethereum, in contrast, has seen a drop in weekly inflows by 93.27%. On the flip side, Solana has seen its inflows increase by almost 10%, indicating a growing interest in the altcoin.
Factors Contributing to Inflow
Bitcoin’s surge is due in part to anticipation of the approval of a spot-based Bitcoin ETF in the US. However, Solana’s recent impressive performance on TVL and a spike in SOL’s trading volume on decentralized exchanges are also contributing factors. Further, data from DeFiLlama reveals a 77.62% increase in TVL on Solana, signaling impressive growth.
Solana’s Potential
Amidst a tough cryptocurrency market, Solana has proven to be popular among institutional investors, surpassing major crypto assets. On-chain intelligence platform Messari indicates Solana’s position as the hub for Decentralized Physical Infrastructure Network (DePIN) projects. SOL is currently trading at $56.27, and investors are eagerly waiting for a breakthrough above $60.
Hot Take: Solana Continues to Shine despite Shaky Crypto Market
Solana’s rising popularity among institutional investors solidifies the altcoin’s position in the cryptocurrency market. With impressive growth and widespread interest, SOL’s $56.27 price tag is ringing loudly across crypto markets with a potential breakthrough looming above $60.
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