- Solana recorded total inflows of about $0.7 million in the past nine weeks and over $26 million YTD, according to CoinShares.
- There is about $75 million invested in Solana products, hence outpacing XRP, Cardano, and Tron.
After comparing top digital assets, Solana (SOL), emerged as the most favorite among investors according to a weekly report issued by CoinShares. The report noted that Solana’s investment flows outpaced those of Polygon and Ethereum during the past few weeks despite the former lagging in total value locked (TVL) and DeFi activities. According to market aggregate data provided by defillama, the Solana network has a TVL of about $306 million compared to $21 billion and nearly $1 billion for Polygon ecosystems.
During the last week of August, the report by CoinShares highlighted that the digital asset investment product flows cooled off, with a minor outflow of about $11.2 million. However, the total digital asset investment product flows in the past seven weeks heightened to about $342 million, hence adding a negative impact on the increased bearish sentiments.
Can Solana Maintain Its Momentum as the Altcoin of Choice?
According to CoinShares’ weekly report, Only Bitcoin and Solana recorded an inflow of funds during the last week of August. While Bitcoin posted an inflow of about $3.8 million during the past week, Solana investment funds recorded an inflow of approximately $0.7 million. With approximately $75 million in assets under management in the Solana ecosystem, CoinShares highlighted that the network has recorded a total inflow of about $26 million YTD.
Ethereum (ETH) and Tron (TRX) have recorded a total outflow of about $102 million and $51 million respectively YTD. As a result, Ethereum has about $6.877 billion in total AUM while Justin Sun-backed Tron network has about $22 million.
Most Altcoins saw outflows, especially $MATIC and $ETH with US$8.6m and US$3.2m outflows respectively. On the other hand, $SOL saw inflows for the 9th consecutive week totalling US$0.7m, making it the most loved altcoin amongst investors at present.
🧵3/5 pic.twitter.com/4X1XeBI6og
— CoinShares (@CoinSharesCo) September 4, 2023
From the data, it is evident that Solana has been attracting more investments in YTD, despite the adverse effects of the FTX and Alameda Research implosion. Nonetheless, CoinShares noted that the general trading volume in the digital assets investment products has significantly cooled off to about $2.8 billion. As a result, the data is likely to change in the near term future especially if the United States approves a Bitcoin and Ethereum spot ETF before the end of the first half of next year.
Bigger Picture
The Solana network has recorded significant increments in the DeFi ecosystem, especially after the official launch of the flagship smartphone dubbed Saga Mobile. The mid-cap altcoin, with a total market capitalization of about $7.9 billion and a 24-hour average traded volume of approximately $254 million, traded around $19 on Tuesday, down over 92 percent from its ATH that was achieved during the 2021 crypto bull market.
Solana, at its core, is about people.
About a resilient global community changing what's possible together. About you, pushing limits.
To start your week, shoutout a person or project from the Solana community who has made a difference👇 pic.twitter.com/G4AxE7zO9i
— Solana (@solana) September 4, 2023
The Solana ecosystem has thrived in the recent past due to its vibrant global community of developers and DeFi users. With over $1.5 billion in stablecoins market capitalization, the Solana ecosystem reported a total of about 77.9k active users in the past 24 hours.
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