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Investment products related to Solana (SOL) have experienced inflows totaling $26 million since the beginning of 2023, surpassing all other altcoins, including Ether (ETH), indicating it is the “most favored altcoin among investors,” as reported by CoinShares.
In the weekly report on Digital Asset Fund Flows dated Sept. 4, CoinShares’ research lead, James Butterfill, highlighted that trading volumes for cryptocurrency investment products for the week ending Sept. 1 were 90% higher than the average for the year to date, with outflows from crypto products decreasing to $11.2 million.
This represents a seven-week period of negative sentiment, during which $342 million has exited crypto products; however, year-to-date, investment products still show a net inflow of $165 million.
Crypto investment products have predominantly experienced outflows over the last seven weeks. Source: CoinShares
Despite the outflows, Solana products have remained unaffected, recording weekly inflows of $700,000 — marking the ninth consecutive week of inflows, totaling $14.1 million during that period, and year-to-date inflows of $26 million.
Weekly fund flows indicate positive inflows to Bitcoin and Solana for the week ending Friday, Sept. 1. Source: CoinShares
Bitcoin (BTC) products were the only other assets to experience weekly inflows, amounting to $3.8 million, while Short BTC, Polygon (MATIC), and ETH products all reported weekly outflows.
SOL’s price has mostly remained stable since January 1. Source: Cointelegraph
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The inflows into Solana occur alongside a series of recent positive developments concerning the network.
On Sept. 1, Rune Christensen, co-founder of MakerDAO, put forth a proposal to construct the project’s forthcoming native chain based on a fork of Solana’s codebase, despite its longstanding association with Ethereum.
Related: Bitcoin ETF applications: Who is filing and when the SEC may decide
On Aug. 23, it was reported that Shopify incorporated the Solana-based payment network, Solana Pay, into its payment options, initially utilizing the stablecoin USD Coin (USDC).
The Solana network has also experienced enhancements in performance and reliability, with only one outage reported in 2023 thus far.
SOL’s price has risen approximately 95.5% year-to-date but has mostly fluctuated between $20 and $25 since mid-January. As of 12 am UTC on Sept. 5, it was trading around $19.5, according to Cointelegraph data.
Nonetheless, SOL is down 92.5% from its all-time high of nearly $260 reached in November 2021.
Magazine: BitCulture: Fine art on Solana, AI music, podcast + book reviews
