Solana Leads as Crypto Investment Products See Outflows
Last week, most crypto assets investment products experienced net outflows of investments, putting an end to 11 consecutive weeks of inflows. This was expected due to a period of consolidation and profit-taking in the cryptocurrency market. According to CoinShares, digital asset investment products saw minor outflows of $16 million, mainly driven by Bitcoin. However, Solana stood out with a 240% increase in net inflows compared to the previous week.
Solana Gains Trust from Institutional Investors
Digital asset investment products have been performing well since late September, with increased inflows in anticipation of the approval of spot Bitcoin ETFs in the US. While most inflows have been directed towards Bitcoin, altcoins like Solana and Ethereum have also performed exceptionally. However, last week showed a different trend, with Bitcoin products experiencing outflows of $32.8 million and Ethereum witnessing outflows of $4.3 million. These outflows were primarily due to institutional investors taking profits rather than a change in sentiment.
The majority of outflows occurred in the US ($18.3 million) and Germany ($9.7 million). On the other hand, Solana continued to dominate the institutional space by receiving $10.6 million in inflows, marking a 240% increase from the previous week. Cardano and XRP also saw minor positive movements with inflows of $3 million and $2.7 million respectively.
Cardano’s Strong Performance
Solana’s institutional inflows reflect its outstanding performance this year. The native SOL token has surged over 520% since the beginning of the year and recently surpassed $75 again. Technical analysis suggests that Solana is on its way to reaching the $100 mark.
Currently, Solana is trading at $75.91, its yearly high, and has gained 24% in the past 30 days. DeFi Total Value Locked (TVL) on the Solana blockchain has also increased by 73% during the same period. Analysts predict a price target of $90 for Solana in the near future.
Hot Take: Solana’s Rise Continues
Solana’s impressive performance and increasing institutional inflows demonstrate its growing prominence in the cryptocurrency market. Despite the overall outflows in crypto investment products, Solana remains a strong contender with significant growth potential. With its native SOL token surging over 520% this year and technical analysis suggesting further upward movement, Solana seems to be on a promising trajectory. Institutional investors are recognizing Solana’s value and are flocking to invest in this altcoin. As the crypto market evolves, Solana’s rise is likely to continue, making it an asset worth watching closely.
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