Cryptocurrency Investors Flock to Solana as Ethereum Rival Gains Momentum
If you’re looking to invest in the smart contract platform Solana ($SOL), now might be the perfect time. Despite being negatively affected by the collapse of FTX, Solana has been attracting significant inflows this year, recently marking its ninth consecutive week of inflows. This information comes from CoinShares’ latest Digital Asset Fund Flows weekly report.
While overall cryptocurrency investment products experienced outflows of $11.2 million, altcoins like Polygon ($MATIC) and Ethereum saw significant outflows as well. However, Solana managed to attract $700,000 in inflows, bringing its total inflows for the year to $26 million. It seems that Solana is currently the favorite altcoin among investors.
Bitcoin also saw inflows of $3.8 million, but products shorting BTC experienced their nineteenth consecutive week of outflows. Their assets under management have fallen by 48% from their peak this year.
Solana’s Price Rise and Potential
Just last month, Solana briefly surpassed Dogecoin ($DOGE) as the eighth largest digital asset by market capitalization. Analysts have been optimistic about the cryptocurrency space, including specific price predictions for SOL.
Influencer Benjamin Cowen, known for his insights on cryptocurrencies, believes that Solana could experience a significant turnaround, similar to what Cardano ($ADA) did during the previous bear market.
It’s important to note that Solana’s price was impacted by the collapse of FTX, as the exchange’s founder, Sam Bankman-Fried, was a major supporter and investor of Solana. Nevertheless, the future outlook for Solana remains promising.
Hot Take
Solana’s recent surge in popularity and investment inflows demonstrate the growing interest in this Ethereum rival. With its potential for significant growth and positive predictions from analysts, it’s definitely a cryptocurrency worth considering for your investment portfolio.
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