Institutional Investors Now Moving To Solana As Bitcoin And Ether Lose Steam
Institutional investors have shifted to Solana as the top two largest cryptocurrencies by market cap show signs of continued inclination. A recent report by CoinShares reveals that last week, SOL investment products accounted for 86.6% of total weekly inflows of crypto investment products.
The report claims that Solana’s (SOL) investment products saw inflows of $49.4 million for the week ended by September 10. During the period, the cumulative inflows for crypto investment products were about $57 million, with SOL accounting for over 85% of that volume.
“A combination of price appreciation and inflows now brings Solana’s assets under management to $97 million, the 5th largest of all investment products,” the report read.
It has been four weeks running that digital asset products are seeing inflows. Interestingly, during this period, the demand for altcoins has considerably outplayed that of Bitcoin, with BTC products seeing an inflow of a measly hundreds of thousands.
Along with BTC, the appetite for Ethereum has also been significantly low. As per the report, institutional investors offloaded around $6.3 million worth of ETH as the price of the second-largest cryptocurrency by market dropped by 10% during last week.
Solana: One of the Best Performers in 2021
Since the start of 2021, Solana’s price has rallied by over 10,000%. To put this into perspective, $1,000 invested in Solana in January 2021 would have been worth over $138,000 today.
Moreover, in the past 30 days alone, Solana has risen by over 300%. In comparison, the two largest cryptocurrencies have hardly gained around 50% in the last month. Solana has even flipped Dogecoin, becoming the 7th largest cryptocurrency by market capitalization.
Solana uses a unique mechanism of combining Proof-of-History (PoH) with Proof-of-Stake (PoS) to massively increase transaction speed while keeping gas fees at low levels ?— which explains why many call it an “Ethereum killer.”
“The SOL outperformance in the market recently is more or less the continuation of its growth run in recent times,” said Petr Kozyakov, co-founder and CEO at the crypto payment gateway firm Mercuryo.
Greg Waisman, COO at Mercuryo and a crypto veteran, expects Solana to hit $500 in the near future, reasoning that it is imitating Ethereum’s growth path. “Solana’s growth runs appear to be mimicking that of Ethereum (ETH) and Binance Coin (BNB), and the $500 projection may turn out to be a conservative one for the coin,” Waisman said.
Read more: https://zycrypto.com/institutional-investors-now-moving-to-solana-as-bitcoin-and-ether-lose-steam/
Text source: ZyCrypto
