Solana, the world’s 7th most valuable digital currency, is becoming popular among institutional investors. Last week, Solana attracted more institutional inflows than Bitcoin , Ethereum , XRP, Cardano and Polkadot.
According to the recent digital asset weekly fund flows report published by CoinShares, Solana investment products saw inflows worth approximately $50 million last week, compared to minor inflows of $0.2 million in BTC investment products and outflows of nearly $6 million from ETH investment products.
One of the key reasons behind the rising popularity of Solana among institutional investors is its price action. SOL has increased by nearly 300% in the last 4 weeks. Solana touched an all-time high of $210 on 9 September 2021, but it saw a correction in the following days. Currently, Solana is trading near $170 with a market cap of $50 billion.
“During last week’s price falls, Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. This was reflected with inflows, dwarfing any other digital asset, totaling almost US$50m. A combination of price appreciation and inflows now brings Solana’s assets under management (AuM) to US$97m, the 5th largest of all investment products,” CoinShares mentioned in the report.
During the recent bullish rally, Solana crossed the market cap of XRP and became the world’s 6th most valuable digital asset.
Solana and Altcoins
Since the start of August 2021, institutional investors have started diversifying their investment portfolios through investment in different altcoins including Solana, Cardano, XRP and Polkadot. “The trend of diversification remains intact amongst investors, with inflows into Cardano, multi-asset, XRP and Polkadot totaling US$3.5m, US$3.2m, US$3.1 and US$1.7m, respectively. Digital asset investment products saw inflows totaling US$57m last week, posting their 4th week of inflows. Volumes in investment products have now risen 143% since their lows in early July to US$3.8bn,” the report added.
The overall share of altcoins in the global crypto assets under management (AUM) has increased sharply in the last 4 weeks.
