Interest in altcoins may have waned as big crypto investors pull cash out of funds, but one coin still has them excited: Solana.
Over the past seven weeks, investors have largely withdrawn from crypto investment products, European digital asset manager CoinShares said in a Monday report.
But for the past nine weeks, institutional investors have meanwhile been plugging cash into the 10th biggest digital asset by market cap, Solana (SOL).
CoinShares said that $700,000 had been invested over the past week into SOL via crypto investment providers—making the cryptocurrency “the most loved altcoin amongst investors at present.”
And the year-to-date inflows focusing on SOL currently stand at $26 million.
In contrast, investors in the past week pulled $8.6 million out of Polygon investment products and $3.2 million out of Ethereum.
⏰ Let's start the week with our Crypto Monday! Today, with @jbutterfill, we discuss:
- @Grayscale and the SEC: Could current events facilitate the acceptance of #Bitcoin ETFs?
- @0xPolygonLabs developments facilitating layer 2 integrations on #Ethereum
- Potential opportunities… pic.twitter.com/yAmUA6sQXx
— CoinShares (@CoinSharesCo) September 4, 2023
Iinvestors did put $3.8 million into Bitcoin, the biggest digital asset by market cap, and pulled out of short Bitcoin products for the 19th consecutive week.
The report added that “trading volumes were much higher than average” last week, totaling $2.8 billion.
SOL is the asset used to make transactions on Solana, a blockchain developers use to build decentralized applications which can be anything from first-person shooter games to decentralized finance lending protocols.
And the asset has been getting some traction lately. MakerDAO’s co-founder and CEO Rune Christensen suggested launching the project’s new chain on a Solana-based platform.