Institutional investors have found their new nugget: Solana. SOL products alone represent 86.6% of the inflow of digital assets.
Last week, Bitcoin and Ethereum fell sharply. This sudden turnaround was due to a massive sell-off from leveraged investors. Over 7 days, the price of ETH and BTC therefore record losses.
This trend is therefore reflected in a change in demand from institutions for investment products on these two crypto-assets. In addition, another trend is confirmed and it benefits SOL, the native token of Solana.
The SOL nugget of institutional traders
Already fifteen days earlier, investment flows were leaping in the direction of SOL products. The increase was 388% to $ 13.2 million. The interest of institutional traders cannot be denied according to the Digital Asset Fund Flows Weekly report.
These investments have quadrupled in the space of a week. The flow in these products backed by Solana is still rising by 275%. It stands at a record high of $ 49.4 million.
SOL’s inflow alone is equivalent to 86.6% of crypto product inflow between September 6 and 10 – or $ 57 million. It is an indisputable plebiscite for Solana.
In a hectic crypto-asset market, SOL was one of the few major cryptocurrencies to achieve double-digit growth. Over the same period, the price of SOL gained another 36%.
This dazzling progression allows Solana to stand out even more. “The combination of price appreciation and inflows now brings Solana’s assets under management to $ 97 million, ranking 5th among all investment products,” notes CoinShares.
Abrupt correction for ETH products
And the favorable wind pulling the SOL contributes to a fourth consecutive week of positive flows for digital assets. The demand for altcoins thus clearly supplants that of Bitcoin (just $ 200,000 inflow).
Ether does not do better. ETH’s 10% price drop last week actually led institutional investors to reduce their exposure to Ether products by $ 6.3 million.
Cardano is going through a period of correction. Investors had widely anticipated the launch of Alonzo and smart contracts. This leverage no longer pulls the value of the ADA, which on the contrary recedes.
Over one week, the flow to these products declined by 46%. Investors may have preferred multi-asset investment instruments and other cryptos to ADA. Multi-asset, Ripple, Polkadot, and Bitcoin Cash show inflow of $ 3.2, $ 3.1, and $ 1.7 million, respectively – and $ 600K for BCH.
Despite these good indicators, the total value of assets under management of institutional managers fell 9% over one week to $ 56.3 million. This drop is however reasonable given the drop in prices over the period.