High-performance blockchain Solana (SOL) is growing in popularity among cryptocurrency investors, threatening more established crypto asset investment products.
According to digital asset management firm CoinShares, the seventh-largest cryptocurrency by market cap saw more inflows than Bitcoin and Ethereum during the week ending September 13th.
During the period when the cryptocurrency market largely saw declines, Solana defied the trend by rising in price while recording close to $50 million in inflows compared to Bitcoin’s $0.2 million and Ethereum’s $6.3 million.
“During last week’s price falls, Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. This was reflected with inflows, dwarfing any other digital asset, totaling almost US$50m. A combination of price appreciation and inflows now brings Solana’s assets under management (AuM) to US$97m, the 5th largest of all investment products.
Bitcoin remained flat for the week with a paltry US$0.2m of inflows, while Ethereum saw minor outflows totaling US$6.3m.”
CoinShares also says that during the seven-day period, cryptocurrency investors continued to diversify. Altcoins such as Cardano (ADA), Polkadot (DOT), and XRP consequently recorded higher inflows than Bitcoin.
“The trend of diversification remains intact amongst investors, with inflows into Cardano, multi-asset, XRP, and Polkadot totaling US$3.5m, US$3.2m, US$3.1, and US$1.7m respectively.”
Year-to-date, Solana has recorded an impressive level of inflows, according to CoinShares. With the exception of multi-asset crypto investment products, Solana now enjoys the third-highest level of inflows year-to-date.
So far in 2021, Solana has recorded $74 million in inflows, which remains dwarfed by Ethereum’s $985 million and Bitcoin’s $4.24 billion. Polkadot, Cardano, and XRP are behind Solana with year-to-date inflows of $70 million, $65 million, and $51 million respectively.
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