Institutional investors are increasingly interested in Solana, which is the 7th most valuable digital currency in the world. Solana received more institutional inflows last week than Bitcoin, Ethereum and XRP, Cardano, and Polkadot.
According to the latest digital asset weekly fund flows report, Solana investment products saw an inflow of approximately $50 million last Wednesday, compared with minor inflows in BTC investment products of $0.2 million and outflows in ETH investment products of $6 million.
The price action is one of the main reasons Solana has been so popular with institutional investors. In the past 4 weeks, SOL has risen by almost 300%. Solana reached an all-time high at $210 on September 9, 2021. However, it experienced a correction over the next few days. Solana trades at $170, with a market capitalization of $50 billion.
“Solana’s price outperformed a basket of top 10 digital assets by 34% last week, and had risen 24% each week. Inflows were also a major factor, surpassing any other digital asset and totaling nearly US$50m. Combining price appreciation and inflows has now brought Solana’s assets to management (AuM), to US$97m. This makes it the 5th largest investment product,” CoinShares said in the report.
The recent bullish rally saw Solana surpass the market cap of $XRP, and was named the 6th most valuable digital asset in the world.
Solana and Altcoins
Institutional investors have been diversifying their portfolios since August 2021 by investing in various altcoins such as Solana and Cardano, XRP, and Polkadot. Investors continue to follow the trend of diversification, with inflows into Polkadot, multi-asset and Cardano totaling US$3.5m and US$3.2m respectively. Last week saw inflows of US$57m into digital asset investment products. This is their fourth week of inflows. The report said that investment product volumes have increased 143% from their lows in July to US$3.8bn.
In the last four weeks, the overall share of altcoins within the global crypto assets under administration (AUM) has risen sharply.