Solana Emerges as the Top Pick for Institutional Investors in 2023
Institutions have shown strong interest in Solana, as per CoinShares’ recent crypto fund report, even during a relatively flat period for the broader crypto market.
While many altcoins experienced limited activity, Solana stood out with consistent inflows over 27 weeks, outweighing selloffs by a significant margin. In the past week alone, institutions acquired $5 million worth of Solana, solidifying its position as the “most-loved altcoin this year.” This success is attributed to Solana’s strategic partnerships with financial institutions like Visa, along with its reputation for fast and cost-effective transactions. Solana recently achieved its highest total value locked (TVL) of the year, reaching $338.82 million, and its native token, SOL, saw a 20% weekly price increase, trading at $23.40.
Additionally, Bitcoin experienced a positive shift in institutional interest, attracting $20.4 million in inflows. Factors such as the U.S. government’s budget negotiations and the rise of the 10-year government bond may have linked this renewed interest in Bitcoin. Despite these positive developments, trading volumes remain comparatively low, reminiscent of levels seen in 2020. Regionally, there are disparities in institutional activity, with the U.S. witnessing outflows, Canada showing buying pressure, and Europe seeing substantial inflows. In contrast, Ethereum continues to experience outflows, earning the label of the “least-loved altcoin” for the year, with seven consecutive weeks of selling and a total of $114 million offloaded over the year.
Clever Robot News Desk 3rd October 2023
