A Closer Look: Dissecting The Solana Inflow Surge
Last week witnessed a significant surge in inflows for Solana, making it a leader in altcoin investment interests and outshining Bitcoin. According to a recent report from Coinshares, Solana amassed approximately $24 million, marking its largest inflow since March 2022.
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.
While Bitcoin continued to dominate the market, Solana grabbed headlines, indicating its growing appeal among digital investors. James Butterfill, Head of Research, emphasized Solana’s re-emergence as a sought-after altcoin, especially in light of recent Ethereum futures ETF product launches. According to the report, Solana funds reported inflows for 28 weeks, with only four weeks experiencing outflows.
Bitcoin, as always a major player, recorded inflows of $43 million. A subset of investors, potentially capitalizing 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, contributing to 90% of the total inflows. In contrast, the combined inflows from the US and Canada totaled a mere $9 million. Butterfill highlighted this regional disparity, underscoring evolving market dynamics and investor preferences.
Additionally, trading volumes for exchange-traded products surged by 37%, reaching $1.13 billion for the week. Trusted exchanges dealing with Bitcoin also witnessed a 16% increase in trading volume.
However, the launch of six Ethereum futures ETFs in the US fell short, accumulating below $10 million. Butterfill attributed this response to a “tepid appetite,” influenced by market environments and investor preferences, rather than the asset’s potential.
Despite the positive inflows from Solana last week, both Solana and Bitcoin are currently facing losses. Solana 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 decreased by 2.9% in the past 7 days and 1.4% in the past day, with a trading price currently at $27,518.
