Solana Emerges as Top Choice for Altcoins with Record Inflows

Solana has attracted rejuvenated investor attention as the project records a positive weekly fund inflow.

Sunbathing lady sees Solana coins floating around her.
Created by Kornelija Poderskytė from DailyCoin
  • Solana is heralded as the top choice for altcoins.
  • The project recorded a positive weekly inflow.
  • Recent developments within the network might have sparked interest.

Institutional investor interest in altcoins may have waned, but one coin seems to be weathering the storm. Solana year-to-date (YTD) inflows have surged to $26 million since the beginning of the year, according to a September 4 fund flows weekly report by CoinShares.

In contrast, Bitcoin, the biggest digital asset by market cap, registered inflows worth $3.8 million as institutional investors pulled out of short Bitcoin products for the 19th consecutive week.

Immune to the Wave of Crypto Outflows

While CoinShares’ head of research, James Butterfill, has noted in the report that crypto product outflows have cooled, dropping to $11.2 million during the week ending September 1, the run on negative sentiment over the last seven weeks has reached $342 million.

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Notably, Solana has experienced an inflow worth $700,000 over the past week, while investors have pulled out $8.6m and $3.2m from Polygon and Ethereum, respectively, during the same period.

Although the 10th biggest digital asset by market cap has registered an impressive 95.5% YTD gain, SOL has predominately traded between $20 and $25 since the beginning of 2023. At press time, the coin was trading at $19.35.

Solana has accumulated $14.1 million in inflows in the past nine weeks.

Positive Developments Within the Network

Solana’s positive weekly inflow record follows a series of recent developments within the network, on top of improved performance and reliability, with only one outage reported in 2023.

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Despite a longstanding association with Ethereum, on September 1st, MakerDAO Co-Founder Rune Christensen proposed building the project’s new native chain based on Solana’s codebase fork.

On August 23, reports indicated that Shopify had integrated Solana Pay with its payment options, with the support of stablecoin USD Coin (USDC).

Stay updated on this unfolding development involving Solana and FTX:

Fears Over FTX’s 7M SOL Shift: Solana Co-Founder Steps In

Read how Turkey is turning to Bitcoin as inflation bites harder:

Inflation-Ridden Turkey Turns to Bitcoin: Will the Rest of the World Follow?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.