HomeNewsSolana's Winning Streak Continues: $24 Million Inflows Break Records

Solana’s Winning Streak Continues: $24 Million Inflows Break Records

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  • Solana registered a record $24 million inflow, marking its largest since March 2022.
  • Digital assets, with Solana and Bitcoin leading the charge, recorded net inflows of $78 million, the most since July.

Drawing insights from a recent report by The Block, the digital asset ecosystem is experiencing a significant surge in investment interest, with Solana emerging as a noteworthy performer.

Solana Takes the Spotlight in Altcoin Investments

Last week, Solana piqued interest among altcoin funds, adding an impressive $24 million to its coffers. This not only marks the largest inflow for Solana since March 2022 but also solidifies its position as the altcoin of choice for many investors. As highlighted by James Butterfill, the Head of Research, Solana’s increasing popularity can be partly attributed to the recent launch of ether futures ETF products. Remarkably, Solana funds have witnessed inflows in 28 weeks of the current year, with a minimal four weeks of outflows in 2023.

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Bitcoin Maintains its Dominance

While Solana is gaining traction, Bitcoin remains the kingpin of inflows, amassing $43 million. Interestingly, some investors, leveraging the recent upswing in Bitcoin’s price, have begun dabbling in short-bitcoin product positions, which culminated in a $1.2 million inflow during the same timeframe.

A Closer Look at Regional Disparities and Trade Volumes

Europe maintained its lead over the United States in terms of investment, accounting for a staggering 90% of the inflows last week. In contrast, the combined inflows from the U.S. and Canada amounted to a mere $9 million. This suggests an evolving divergence in market sentiment, as articulated by Butterfill. Additionally, trading volumes for exchange-traded products saw a 37% uptick, touching $1.13 billion for the week. Meanwhile, Bitcoin volume on trusted exchanges experienced a 16% growth.

In relation to the newly launched ether futures ETFs in the U.S., they garnered just under $10 million, indicating a lukewarm reception. This is especially striking when juxtaposed against the $1 billion amassed by bitcoin futures ETFs in their debut week in 2021. As per Butterfill, the current subdued enthusiasm for digital assets, compared to the fervor in October 2021, might be contributing to this disparity.

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Collin Brown
Collin Brown
Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.
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