Solana has maintained its position within the altcoin market, exhibiting a notable influx of capital that surpassed that of all other cryptocurrencies save for Bitcoin over the previous week. Institutional investment products have had a consistent influx of capital for a duration of eight consecutive weeks, wherein certain cryptocurrencies have garnered a comparatively higher volume of incoming investments in comparison to others.
Based on the current CoinShares report about digital asset funds, a significant portion of the funds were allocated to Bitcoin goods. This trend may be attributed to the sustained appeal of Bitcoin among investors, which has been further bolstered by recent advancements within the cryptocurrency sector.
The Solana blockchain network is experiencing a significant increase in traction and support. Within the realm of institutional investors
Solana has had a remarkable surge in value over the current year, as evidenced by the substantial increase of over 465% in the value of its native SOL token since the commencement of the year. Simultaneously, investment vehicles associated with Solana have garnered significant attention from institutional investors, resulting in inflows over $135 million thus far in the current year.
Based on the findings of CoinShares, there was a cumulative influx of $176 million into digital asset investment funds over the previous week. A sum of $155 million was allocated to Bitcoin, constituting 3.4% of the overall assets under management for the past eight weeks. Consequently, the cumulative influx for the current year has amounted to $1.32 billion, but significantly lower than the figures recorded in 2021 and 2020, which stood at $10.7 billion and $6.6 billion, respectively.
The most recent data from CoinShares highlights a significant decline in weekly inflow into Ethereum goods, with a staggering decrease of 93.27% from $49.1 million to $3.3 million. In contrast, Solana had a notable growth of around 10%, rising from $12.4 million to $13.6 million.
Similarly, other alternative cryptocurrencies faced challenges in attracting significant capital inflows. Litecoin and XRP, for instance, saw inflows of only $0.4 million and $0.5 million, respectively. Uniswap and Polygon experienced modest capital outflows of $0.55 million and $0.86 million, respectively.
The majority of cryptocurrencies saw a short period of stabilization during the previous week; however, this trend did not extend to investment goods. According to the study published by Coinshares, the influx of funds into Bitcoin may be attributed to a prevailing optimistic mood, which is closely linked to the anticipated endorsement of a spot-based Bitcoin Exchange-Traded Fund (ETF) in the United States. The aforementioned observation is notably apparent, given that Short-Bitcoin outflows saw a further outflow totaling $8.5 million over the previous week.
In light of these many motivations and a substantial price spike of 101% observed in the previous month, Solana has exhibited development in other dimensions of its ecosystem that might potentially appeal to institutional investors. Firstly, it is noteworthy to mention that Solana has exhibited a really commendable performance in terms of Total Value Locked (TVL) throughout the recent months.
According to the data provided by DeFiLlama, the total value locked (TVL) on the network currently stands at $576.44 million, reflecting a notable surge of 77.62% over the previous month. The platform has also disclosed an increase in the trading volume of SOL on decentralized exchanges over the previous week.
As per the on-chain intelligence platform Messari, Solana has emerged as the key center for initiatives related to the Decentralized Physical Infrastructure Network (DePIN).
What constitutes the worth of a $SOL ?
Despite facing challenging market conditions, Solana has exhibited superior performance compared to prominent cryptocurrency assets. It has emerged as a central platform for decentralized public infrastructure network (DePIN) initiatives, while also making significant product announcements such as the introduction of Firedancer. The provided link (pic.twitter.com/7ouHN089Wd) leads to a
Messari, a prominent cryptocurrency company, sent a tweet on November 20, 2023.
The current trading price of Solana (SOL) is at $56.27, and investors are eagerly awaiting a significant breakthrough over the $60 mark.
