- Ethereum, the largest altcoin, witnessed outflows of $5.2 million last week while assets like inflow were directed to Solana, XRP and MATIC.
- The alt season narrative is heating up as sentiment turns bullish among Ethereum-killer and scaling solution tokens.
- XRP’s social media mentions skyrocketed as price hit a four-month high, fueling the alt season narrative.
While large market capitalization assets like Ethereum noted a decline in capital inflow, Solana (SOL), XRP and Polygon’s token MATIC witnessed an inflow of funds. This has fueled a bullish sentiment among holders. While Bitcoin rally takes a backseat, demand for altcoins and their mentions on social media are on the rise.
Also read: Ethereum struggles to keep up with Bitcoin ahead of Shanghai upgrade
Solana, XRP and MATIC witnessed capital inflows over the past week
Solana, XRP and MATIC have witnessed a spike in capital inflows over the past week based on data from the latest CoinShares report. The report revealed that the largest altcoin by market cap, Ethereum, suffered outflows of $5.2 million over the past week, and this marked the third consecutive week of outflows for the asset.
Bitcoin price rally recently grinded to a halt, and with uncertainty around the Shanghai upgrade, Ethereum is suffering capital outflows. This has offered altcoins an opportunity to yield gains for holders.
Asset weekly flows from CoinShares report
As seen in the table above, Solana, XRP and Polygon noted inflows of $4.8 million, $1.2 million and $1.9 million respectively. There is a spike in interest among investors when it comes to altcoins like SOL, XRP and MATIC.
Interestingly, the rising social dominance of XRPLedger’s native token XRP supports the bullish thesis for the assets. Based on data from crypto intelligence tracker LunarCrush, the social engagement of XRP holders climbed 95.44% over the past week and social mentions of the altcoin climbed 35.6% in the same time period.
XRP social engagements and price
XRP price yielded nearly 20% gains for holders over the past week.
MATIC’s zkEVM launch goes live within a few hours on March 27 and this is another driver of the bullish thesis.
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