• Solana investment products have outperformed Ethereum’s in institutional inflows since the calendar flipped in January, which has helped fuel the recent bullish outlook.
• Solana’s DeFi ecosystem has grown to multichain vibrant protocols with nearly $1 billion in TVL and over $1.681 billion in stablecoins market cap.

Solana (SOL), a top-rated multichain and smart contract-focused blockchain, has grown to a respectable web3 ecosystem with deep liquidity. The Solana network is home to one of the best-performing meme coins in the recent past, BONK. Additionally, Solana network is the only top-rated blockchain with a market cap of over $30 billion that has a smartphone, dubbed Saga mobile.

As a result, the Solana network has attracted notable attention from both retail and institutional investors seeking to diversify their portfolios from Bitcoin (BTC) and Ethereum (ETH). Furthermore, the Solana network has a vibrant development plan backed by top venture capitalists in the crypto industry.

Solana Remains a Favorite Among Institutional Investors

According to a weekly report by CoinShares, a leading European-based crypto fund manager, Solana recorded a total of $4.3 million in crypto flows during the past week. The catch is, however, the fact that SOL has outperformed all other altcoins including Ethereum in cash inflows year-to-date.

Notably, Solana has recorded about $143 million in cash inflows YTD while Ethereum has received a total of $10 million, indicating more institutional investors are betting on SOL to outperform ETH, which is in line with the diminishing returns.

Having registered three and a half months of consecutive positive cash inflows, the Solana investment products now amount to about $455 million. Bitcoin investment products continue to lead with about $33 billion, followed by Ethereum investment products with $8.8 billion. Cumulatively, the total assets under management in the digital assets real amount to about $46.2 billion, whereby Grayscale Investments remains the leader.

However, with the entrance of traditional fund managers in the crypto industry led by BlackRock, a notable shift is expected to occur in the coming years.

SOL Price Action 

Solana’s price has rallied 30 percent in the past two weeks to trade around $66.73.

The large-cap altcoin with a fully diluted market cap of about $40.4 billion has seen its daily traded volume spike to nearly $3 billion, thus invalidating the FTX-induced losses. Meanwhile, SOL bulls are faced with a significant resistance level around $78, after an impressive 338 percent spike since September.

If the SOL bulls manage to push beyond the next hurdle around $78, the altcoin will easily reach $142 in the coming weeks. Otherwise, the altcoin could drop toward the support range between $49 and $52 if the bulls fail to push through in the short term.

The SOL price action is largely pegged to the Bitcoin performance in the coming weeks. Whereby if Bitcoin price drops below $40k, then there is a high likelihood of SOL price dropping in tandem. Moreover, the SOL price has closely followed the recent Bitcoin price action despite the weekly Relative Strength Index (RSI) rallying above 70 for the first time in the 2021 bull rally.

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