The Rise of Solana’s Inflows
The cryptocurrency market has recently experienced a trend of outflows, but there’s one altcoin that stands out. Solana has consistently registered inflows for nine consecutive weeks. In the most recent week, it attracted an additional $0.7 million in investments. Looking at the year-to-date performance, Solana’s appeal becomes even more evident.
According to CoinShares’ latest weekly report:
“The YTD inflows of $26 million suggest it [Solana] is the most loved altcoin amongst investors at present.”
Altcoins Facing Outflows
Unlike Solana, most other altcoins have been experiencing outflows. Here’s a breakdown of the outflows from various altcoins:
- Institutions offloaded Polygon, worth $8.6 million.
- Ethereum saw outflows of $3.2 million.
- The ‘multi-asset’ and ‘other’ baskets noted outflows totaling $9.2 million.
These negative sentiment trends have accumulated to outflows totaling $342 million over the past seven weeks. However, looking at the year-to-date perspective, the situation appears different. CoinShares’ report reveals:
“The year-to-date digital asset investment products remain in a net inflow position totaling $165 million, with the year so far beset with large gyrations of investor flows, very much driven by the hopes and concerns for regulation on digital assets.”
Bitcoin’s Changing Sentiment
Interestingly, the bearish sentiment surrounding Bitcoin seems to be fading in the short term. Institutions purchased Bitcoin worth $3.8 million over the past week. Simultaneously, they sold short-term BTC products worth $3.3 million.
Solana’s Price and Sharpe Ratio
On the price front, Solana recently lost support at $20.07, leading to a decline to $17.22. Currently, SOL is trading at $19.33, already down 6% for the week. This has resulted in the Sharpe Ratio of the asset hovering in negative territory. At present, it indicates a value of -2.79, suggesting that investors holding SOL portfolios are experiencing underperformance. Despite this, institutions acquiring the asset at this stage likely signifies their confidence in an eventual recovery over the mid-term.