Solana (SOL) popularity skyrockets while Bitcoin (BTC) and Ethereum (ETH) flatten
- Institutional demand for Bitcoin and Ethereum is sharply dropping.
- However, investors have found a new coin to target — Solana (SOL).
- The project saw a massive increase in the value inflow and SOL price alike.
The demand for Bitcoin and Ethereum among institutional traders — which was sky-high not too long ago — has flattened significantly over the recent period. Meanwhile, institutions seem to have found a new go-to project — Solana (SOL/USD).
The project is quickly becoming everyone’s go-to alternative to Ethereum (ETH/USD), as well as other, less competent development platforms. Meanwhile, SOL and Solana’s investment products have seen an 86.6% increase in their total weekly inflow last week.
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According to the newest issue of Digital Asset Fund Flows Weekly, Solana’s inflows have reached $49.4 million during that time. Considering that all total inflows for crypto investment products were at around $57 million during the same period, this means that Solana is dominating with 86.6%. This also represents a 275% increase in total inflows for the project, which is quite a massive change in pace for the project.
Demand for SOL surges while other coins see losses
Unsurprisingly, the price of SOL also saw a great increase as a result of the demand and activity, going up by 36% during the same period. All of this combined brought Solana’s assets under management (AUM) to $97 million, making it the 5th largest investment product out there.
Of course, while Solana does lead, it is not the only one that has seen an excellent performance. In fact, digital asset products, in general, have seen the fourth consecutive week of major inflows. It would seem that the demand for altcoins is even managing to overwhelm the investors’ appetite for Bitcoin products.
One reason for the change in inflows may be the fact that institutional investors recently offloaded $6.3 million ETH during its recent price drop, which took its value down by 10%.
Of course, some also expected Cardano (ADA/USD) to take the lead thanks to the fact that it just launched its smart contracts on its mainnet over the week. However, the project’s coin did not go up — instead, it saw a 46% decrease in inflows compared to the week before.