Solana knows no stopping. Now the coin is also attracting professional investors. Can that go well?
Solana is the trader’s favorite. Investors are currently looking at the new shooting star in the Altcoin sky on SOL, like no other coin. No wonder: Most recently, the proof-of-stake coin silenced all critics with its dream performance. SOL has brought a whopping 268 percent onto the streets within the last 30 days. In doing so, he beats the Altcoin competition by far. For comparison: The second best coin in the race for the, well, most valuable coin after Bitcoin, was Polkadot (DOT) in the same period – with “only” 63 percent growth.
As has now become known, the rapid rise of the smart contract platform could well have been fueled by the institutional side. The crypto asset manager CoinShares writes:
Digital investment products saw total inflows totaling $ 57 million last week, making it their fourth week of inflows.
Of that $ 57 million poured into crypto-based digital asset investment products this week, such as the Grayscale Bitcoin Trust, $ 49.4 million went to Solana products. With 86 percent, SOL accounts for the lion’s share of institutional interest. It seems that a considerable part of the capital comes from direct competitors. Because while Solana attracts investors, the same ethers turn their backs. Ethereum loses around 6.3 million US dollars in capital, as CoinShares writes. Bitcoin saw only shallow inflows of $ 200,000.
Bitcoin and Ethereum remain relevant
If you zoom out a little further, you get a different picture. Bitcoin and Ethereum may be giving way to altcoins these days. For the year as a whole, however, they are still the absolute top dogs on the market. With 4.2 billion US dollars, BTC is the undisputed winner in terms of fund flows and even beats second-placed Ethereum (985 million US dollars) by far.
A certain herd mentality is not uncommon in crypto-land. There are always hype coins; Unfortunately, private investors come to the party too late and are annoyed about supposedly easy money that has been left by the wayside. At this point, it remains to be seen whether Solana can hold its own against Ethereum as a smart contract platform in the long term. In any case, Solana has hardly been used as a DeFi platform so far; only around 6 percent of the DeFi volume is accounted for by the protocol.
The crypto sector occasionally drives colorful drives. All too often, however, ascents like Solana’s were snapshots.