Solana Outshines Bitcoin? A Dive Into Last Week’s Crypto Asset Inflows

Samuel Edyme

1 year ago

3 mins read

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Last week marked a noteworthy surge for Solana in inflows, leading the pack in altcoin investment interests and outshining Bitcoin. Solana’s recent performance particularly placed it in the spotlight as it amassed roughly $24 million, the altcoin registered its largest inflow since March 2022, according to a recent report from Coinshares.

A Closer Look: Dissecting The Solana Inflow Surge

Diving into the numbers, the broader digital-asset investment domain observed net inflows for the second consecutive week, accumulating a significant $78 million, showcasing a bullish sentiment reminiscent of July’s performance.

While Bitcoin, the quintessential crypto giant, continued to dominate, Solana grabbed headlines. As highlighted by James Butterfill, Head of Research, Solana’s re-emergence as a sought-after altcoin signifies its growing appeal among digital investors, especially in light of recent Ethereum futures ETF product launches.

According to the report, with a noteworthy track record for 2023, Solana funds reported inflows for 28 weeks, with a mere four weeks registering outflows.

Always a major player, Bitcoin recorded inflows of $43 million. The report disclosed that a certain subset of investors, potentially riding on Bitcoin’s recent price momentum, initiated positions in short-bitcoin products, leading to an inflow of $1.2 million within the week.

Crypto market weekly fund flows. | Source: CoinShares

Diverging Investment Patterns: Europe Leads While ETH ETFs Underwhelm

Geographically, Europe continued its digital asset supremacy, accounting for 90% of the total inflows. On the contrary, the combined inflows from the US and Canada totaled a mere $9 million. According to Butterfill, this noticeable regional disparity in investment sentiments underscores evolving market dynamics and investor preferences.

Adding to the digital fervor, trading volumes for exchange-traded products surged by 37%, settling at $1.13 billion for the week. Trusted exchanges dealing with Bitcoin also witnessed a 16% jump in trading volume.

However, it wasn’t all sunshine and rainbows. The recent US launch of six Ethereum futures ETFs raked below $10 million. While seemingly substantial, Butterfill termed the response as showcasing a “tepid appetite,” particularly when juxtaposed against the $1 billion amassed by Bitcoin futures ETFs in their inaugural week back in 2021.

However, Butterfill attributed this difference more to the contrasting market environments and the “poor investor appetite” for digital assets rather than a direct reflection of the asset’s potential.

Furthermore, regardless of the recorded positive inflows from Solana last week, the altcoin is currently facing a bloodbath along with Bitcoin. Notably, Solana has declined by nearly 10% in the past week and 4.5% in the past 24 hours, with a market price of $22.30 at the time of writing.

Solana (SOL) price chart on TradingView — Solana (SOL) price is moving sideways on the 4-hour chart. Source: SOL/USDT on TradingView.com

In contrast, Bitcoin has also shed its portion of losses, down by 2.9% in the past 7 days and 1.4% in the past day, with a trading price currently at $27,518.

Featured image from Unsplash, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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