Solana Sees Strong Inflows in 2023, CoinShares Reports
Solana (SOL) has emerged as the “most loved altcoin” among investors, according to CoinShares. The investment products related to Solana have witnessed inflows of $26 million since the beginning of 2023, surpassing other altcoins including Ether (ETH).
Positive Trend for Solana
In a recent Digital Asset Fund Flows weekly report, James Butterfill, the head of research at CoinShares, pointed out that trading volumes for crypto investment products were 90% above the year-to-date average in the week ending September 1. Meanwhile, outflows from crypto products dropped to $11.2 million.
Despite the negative market sentiment over the past seven weeks, with an outflow of $342 million, Solana’s investment products remained positive in terms of net inflows, with a total of $165 million since the beginning of the year.
- Solana’s investment products have attracted $26 million in inflows since the start of 2023, making it the “most loved altcoin” by investors.
- Bitcoin (BTC) was the only other asset to experience weekly inflows, totaling $3.8 million.
- Despite a sideways trading pattern, SOL’s price has risen by approximately 95.5% year-to-date.
- Solana has seen positive developments in its network, including partnerships and performance improvements.
Inflows for Solana, Outflows for Others
While most crypto investment products experienced outflows, Solana’s products saw weekly inflows of $700,000. This consistent inflow trend has continued for the past nine weeks, with a total inflow of $14.1 million during that time period, and $26 million year-to-date.
Bitcoin was the only other asset to witness positive weekly inflows, with a total of $3.8 million. On the other hand, Short BTC, Polygon (MATIC), and Ether products all recorded weekly outflows.
Positive Developments for Solana
Solana’s recent inflows align with a series of positive developments for the network. Notably, Rune Christensen, co-founder of MakerDAO, submitted a proposal to use Solana’s codebase for a forthcoming native chain expansion, despite its historical relationship with Ethereum.
In addition, e-commerce giant Shopify added Solana Pay, a Solana-based payment network, to its list of payment options. This integration initially supports the stablecoin USD Coin (USDC).
Furthermore, Solana’s network has demonstrated improved performance and reliability, experiencing just one outage so far in 2023.
Price Volatility and Outlook
Although Solana’s price has shown a year-to-date increase of approximately 95.5%, trading has mostly been sideways in the $20 to $25 range since mid-January. As of September 5, Solana was trading around $19.5, according to Cointelegraph data.
However, it is worth noting that SOL is down 92.5% from its all-time high of nearly $260, reached in November 2021.
As Solana continues to attract significant investor interest, its position as one of the most loved altcoins is reinforced. The network’s steady inflows demonstrate bullish sentiment among investors, suggesting that Solana’s potential for growth remains promising. For the latest news and updates on the cryptocurrency industry, visit Uber Crypto News.