Investors have recently been showing caution in the cryptocurrency market, with significant withdrawals from crypto investment products over the past seven weeks, as reported by CoinShares.
However, there's a notable exception to this trend, as institutional investors have been consistently funneling capital into Solana (SOL), the 10th largest digital asset by market capitalization, for the past nine weeks.
According to CoinShares' latest findings, approximately $700,000 flowed into SOL through various crypto investment providers in the past week alone, solidifying Solana's position as "the most loved altcoin amongst investors at present." Moreover, the year-to-date inflows directed towards SOL have impressively reached $26 million.
In stark contrast, other prominent cryptocurrencies faced investor withdrawals during the same period. Notably, Polygon investment products witnessed an outflow of $8.6 million, while Ethereum saw a decrease of $3.2 million in investor capital. In contrast to these trends, investors allocated $3.8 million into Bitcoin, the largest digital asset by market capitalization, although they continued to withdraw from short Bitcoin products for the 19th consecutive week.
CoinShares' report also highlights the remarkable surge in trading volumes during the previous week, surpassing the usual average and totaling an impressive $2.8 billion. These developments indicate a shifting landscape within the cryptocurrency market, with Solana gaining increasing favor among investors while other assets experience more turbulent waters.
SOL serves as the primary currency for conducting transactions on the Solana blockchain, a platform embraced by developers to create a wide range of decentralized applications. These applications span diverse categories, encompassing everything from immersive first-person shooter games to decentralized finance lending protocols.
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