Solana’s investment products have attracted a substantial inflow of $26 million USD since the beginning of 2023, surpassing all other altcoins including Ethereum, making it the “most favored altcoin,” as reported by CoinShares.
In their weekly Digital Asset Fund Flows report on September 4th, James Butterfill, the Head of Research at CoinShares, highlighted that the trading volume for cryptocurrency investment products in the week ending September 1st was over 90% higher than the year-to-date average. The outflow from cryptocurrency products was $11.2 million USD.
This figure marks a seven-week streak of negative sentiment, with $342 million USD leaving cryptocurrency products during that period. However, since the start of the year, investment products have still seen a positive net inflow of $165 million USD.
Interestingly, the outflow trend does not seem to affect Solana’s investment products. They have maintained a weekly inflow of $700,000 USD, marking the ninth consecutive week of inflow, totaling $14.1 million USD during that time. The year-to-date inflow for Solana products has reached $26 million USD.
Bitcoin products were the only other assets with a weekly net inflow, amounting to $3.8 million USD. On the other hand, Short BTC, Polygon (MATIC), and Ether witnessed strong outflows.
The inflow into Solana comes amidst a series of positive developments for the network. On September 1st, Rune Christensen, the co-founder of MakerDAO, proposed building the upcoming Layer 1 chain of the project based on a Solana codebase, despite the project’s long-standing relationship with Ethereum.
On August 23rd, there were reports that Shopify had integrated Solana Pay, a Solana-based payment network, into its payment options, starting with the stablecoin USD Coin (USDC).
The Solana network has also seen improvements in performance and reliability, with only one interruption reported so far in 2023.
SOL’s price has increased by approximately 95.5% since the beginning of the year, trading in a range of $20 to $25 USD since mid-January. Currently, SOL is trading at $19.5 USD. However, SOL has experienced a 92.5% drop from its all-time high in November 2021, which was nearly $260 USD.