Solana Outshines Bitcoin? A Dive Into Last Week’s Crypto Asset Inflows
October 09 2023 - 7:00PM
NEWSBTC
Last week marked a noteworthy surge for Solana in inflows, leading
the pack in altcoin investment interests and outshining Bitcoin.
Solana’s recent performance particularly placed it in the spotlight
as it amassed roughly $24 million, the altcoin registered its
largest inflow since March 2022, according to a recent report from
Coinshares. A Closer Look: Dissecting The Solana Inflow Surge
Diving into the numbers, the broader digital-asset investment
domain observed net inflows for the second consecutive week,
accumulating a significant $78 million, showcasing a bullish
sentiment reminiscent of July’s performance. Related Reading: Will
October Be Bitcoin’s Golden Month Again? A Dive Into A Decade Of
Bullish Trends While Bitcoin, the quintessential crypto giant,
continued to dominate, Solana grabbed headlines. As highlighted by
James Butterfill, Head of Research, Solana’s re-emergence as a
sought-after altcoin signifies its growing appeal among digital
investors, especially in light of recent Ethereum futures ETF
product launches. According to the report, with a noteworthy track
record for 2023, Solana funds reported inflows for 28 weeks, with a
mere four weeks registering outflows. Always a major player,
Bitcoin recorded inflows of $43 million. The report disclosed that
a certain subset of investors, potentially riding on Bitcoin’s
recent price momentum, initiated positions in short-bitcoin
products, leading to an inflow of $1.2 million within the week.
Diverging Investment Patterns: Europe Leads While ETH ETFs
Underwhelm Geographically, Europe continued its digital asset
supremacy, accounting for 90% of the total inflows. On the
contrary, the combined inflows from the US and Canada totaled a
mere $9 million. According to Butterfill, this noticeable regional
disparity in investment sentiments underscores evolving market
dynamics and investor preferences. Adding to the digital fervor,
trading volumes for exchange-traded products surged by 37%,
settling at $1.13 billion for the week. Trusted exchanges dealing
with Bitcoin also witnessed a 16% jump in trading volume. However,
it wasn’t all sunshine and rainbows. The recent US launch of six
Ethereum futures ETFs raked below $10 million. While seemingly
substantial, Butterfill termed the response as showcasing a “tepid
appetite,” particularly when juxtaposed against the $1 billion
amassed by Bitcoin futures ETFs in their inaugural week back in
2021. However, Butterfill attributed this difference more to the
contrasting market environments and the “poor investor appetite”
for digital assets rather than a direct reflection of the asset’s
potential. Related Reading: Ethereum ETFs Face Lackluster Debut
From Small Investors: Is The Hype Fizzling Out? Furthermore,
regardless of the recorded positive inflows from Solana last week,
the altcoin is currently facing a bloodbath along with Bitcoin.
Notably, Solana has declined by nearly 10% in the past week and
4.5% in the past 24 hours, with a market price of $22.30 at the
time of writing. In contrast, Bitcoin has also shed its
portion of losses, down by 2.9% in the past 7 days and 1.4% in the
past day, with a trading price currently at $27,518. Featured image
from Unsplash, Chart from TradingView
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Mina (COIN:MINAUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024