- Solana-based funds registered an increase in capital from institutional investors for a ninth consecutive week.
- The Ethereum-alternative chain’s token has failed to respond to bullish developments like MakerDAO CEO considering a migration to the Solana code base.
- Total value of assets locked in the Solana network climbed nearly 7% over the past nine weeks.
Solana (SOL) price remains close to monthly lows even as there are increasing signs of usage and adoption of the Ethereum-alternative blockchain. Increasing institutional capital inflows or support from a top executive in the crypto industry could fuel a narrative for Solana to recover part of its recent losses.
Also read: XRP price likely to hit $0.81 with latest developments in SEC v. Coinbase lawsuit
Solana funds receive $700,000 from institutional investors
CoinShares, a European alternative asset management firm, published its weekly report on Monday on the state of institutional investments in crypto-based funds. According to the report, investment products noted a “cooling-off” period with relatively minor outflows totaling $11.2 million.
However, Solana-based funds saw inflows totaling $700,000 over the past seven days, posting a ninth consecutive week of gains Meanwhile, competitors such as Polygon and Ethereum registered $8.6 million and $3.2 million in outflows, respectively, over the same period of time.
Capital flows by crypto assets (CoinShares report)
Solana’s year-to-date inflows total to $26 million. According to CoinShares, SOL is “the most loved altcoin” among investors at present.
Another recent development in the crypto ecosystem supports the thesis of SOL’s increasing popularity.
MakerDAO CEO Rune Christensen recently said that Maker is keen on migrating to the Solana or Cosmos code base from Ethereum. This was followed by Ethereum creator Vitalik Buterin shedding nearly $600,000 worth of MKR holdings, sparking a controversy. For the complete story check this post.
On-chain data support Solana price recovery
The total value of assets locked (TVL) in a blockchain is a metric used to track investors’ trust and relevance of the asset. Based on data from crypto intelligence tracker DeFiLlama, the TVL of SOL climbed 6.7% from $286.33 million nine weeks ago to $305.75 million, early on Tuesday. The data is consistent with the increase in institutional capital inflows.
Solana TVL seen on DeFiLlama over a nine week period
At the time of writing, Solana price is $19.39, down 0.31% on the day. The altcoin is yet to begin its recovery despite the catalysts outlined above. It remains to be seen whether the capital inflow from institutional investors and MakerDAO’s preference for Solana’s code base fuels a recovery in SOL price.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.