Inflows Outpace Altcoins
SOL investment products have attracted a remarkable $26 million in inflows since the beginning of 2023. This influx of capital surpasses all other altcoins, including Ether (ETH), which currently trades at $1,633. These numbers suggest that Solana is emerging as the “most beloved altcoin” among investors, according to insights from CoinShares.
In a recent report from CoinShares, James Butterfill, the head of research, highlighted that trading volumes for cryptocurrency investment products in the week ending September 1 were a staggering 90% above the year-to-date average. Furthermore, the outflows from crypto products dropped to $11.2 million during this period.
This decrease in sentiment marked seven consecutive weeks of negative sentiment, resulting in $342 million leaving crypto products. Nevertheless, when considering the year-to-date data, investment products have remained net inflow positive, with a total of $165 million.
Solana Stands Strong
Remarkably, these outflows have not adversely affected Solana products. Solana has witnessed weekly inflows of $700,000 for nine consecutive weeks, accumulating a total of $14.1 million during this period and year-to-date inflows of $26 million.
Bitcoin (BTC) products were the only other assets to experience weekly inflows, totaling $3.8 million. Conversely, Short BTC, Polygon (MATIC), and ETH products all recorded weekly outflows.
Positive Developments Fueling Solana’s Success
Solana’s recent inflows align with a series of favorable developments within the network:
- On September 1, Rune Christensen, co-founder of MakerDAO, proposed building the project’s upcoming native chain using a fork of Solana’s codebase, despite its historical ties to Ethereum.
- On August 23, Shopify added the Solana-based payment network, Solana Pay, to its payment options, starting with the stablecoin USD Coin (USDC).
- The Solana network has demonstrated enhanced performance and reliability, experiencing only one outage in 2023 thus far.
SOL’s Price and Performance
Solana’s price has risen by approximately 95.5% year-to-date but has primarily traded within the $20 to $25 range since mid-January. As of 12 am UTC on September 5, it was trading at approximately $19.5, according to Cointelegraph data.
However, it’s worth noting that SOL has experienced a significant decline of 92.5% from its all-time high of nearly $260 in November 2021.