Investor Interest in Altcoins
While interest in altcoins has dwindled due to significant withdrawals from crypto investment funds, one cryptocurrency continues to generate excitement among investors – Solana.
Recent Investment Trends
According to a recent report by European digital asset manager CoinShares, over the past seven weeks, investors have been largely withdrawing from various crypto investment products. However, during the past nine weeks, institutional investors have been actively allocating capital to Solana (SOL), currently ranked as the 10th largest digital asset by market capitalization.
CoinShares revealed that over the past week alone, a staggering $700,000 has been invested in SOL through various crypto investment providers. This surge in investment activity has earned Solana the title of “the most loved altcoin amongst investors at present.” Moreover, year-to-date inflows into SOL have reached an impressive $26 million.
In contrast, investors have been withdrawing their funds from other cryptocurrencies. Over the past week, approximately $8.6 million was pulled out of Polygon investment products, and $3.2 million was withdrawn from Ethereum investments. However, investors continue to show interest in Bitcoin, channeling $3.8 million into the largest digital asset by market capitalization. Notably, investors have been consistently divesting from short Bitcoin products for the 19th consecutive week. The report also highlighted that trading volumes exceeded the average, reaching a total of $2.8 billion last week.
SOL and the Solana Ecosystem
SOL is the native asset used for transactions within the Solana blockchain ecosystem. Developers leverage Solana to construct decentralized applications spanning a wide array of domains, including first-person shooter games and decentralized finance lending protocols.
Solana’s Growing Appeal
Recent developments have added to Solana’s appeal. Rune Christensen, the co-founder and CEO of MakerDAO, has proposed launching the project’s new blockchain on a Solana-based platform, underlining the increasing recognition of Solana’s capabilities in the crypto space.