During the past 9 weeks, Solana recorded a total inflow of about $0.7 million while all digital asset investment products saw an outflow of about $342 million in the past seven weeks.
One of the leading smart contract blockchains and DeFi ecosystems with over $305 million in total value locked (TVL), Solana (SOL), has been a favorite among most investors. According to a weekly report on digital asset fund flows by CoinShares, Solana was the only top coin to record inflows in the past weeks. Precisely, the report highlighted that Solana posted a total fund inflows of about $0.7 million in the past nine weeks. On the other hand, Polygon (MATIC), and Ethereum (ETH) posted a fund outflow of about $8.6 million and $3.2 million respectively.
In total, the digital asset fund flows recorded an outflow of about $11.2 million, with the total outflows in the past seven weeks totaling about $342 million. CoinShares highlighted that trading volume for digital assets fund flows remained relatively higher than average, totaling about $2.8 billion.
Photo: CoinShares Blog / Medium
Notably, most altcoins recorded outflows in the past weeks amid regulatory concerns and ETF uncertainty in the United States. Nonetheless, Solana continued to attract more investors since the calendar flipped in January.
“While Solana saw inflows for the 9th consecutive week totaling US$0.7m, the YTD inflows of US$26m suggest it is the most loved altcoin amongst investors at present,” CoinShares noted.
Can Solana Maintain Momentum Among Investors Ahead?
The Solana (SOL) ecosystem has been vibrant with decentralized financial (DeFi) platforms, which has significantly helped its average daily traded volume remain high. According to the latest crypto price oracles, Solana had a total market capitalization of about $7.8 billion and a 24-hour traded volume of approximately $253 million.
Nonetheless, the Solana ecosystem is still feeling the effects of the FTX and Alameda Research collapse late last year. Over the weekend, on-chain analysts observed FTX-related wallets transferring SPL tokens through a Wormhole bridge to the Ethereum network, hence sparking fears of possible liquidation. Moreover, FTX held over $1 billion in Solana and its related coins, hence adding possible liquidation pressure as the current administration seeks to make creditors whole again. Notably, Solana’s price is still trading below the pre-FTX levels, at around $19.24 on Tuesday.
In a bid to maintain its future growth prospects, the Solana ecosystem has continued to build technical infrastructure to help onboard mainstream users. Furthermore, Solana has a Web3-oriented smartphone dubbed Saga mobile meant to help users access the DeFi protocols safely and at ease.
However, the Solana network has to continue working on improving its decentralization in a bid to avoid the regular scrutiny of possible missteps of the securities laws.
Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology.
Let us all WIN!
