Solana (SOL) has surged, garnering $26 million in inflows since the beginning of 2023, surpassing all other alternative cryptocurrencies, including Ether (ETH), which is currently priced at $1,615. This trend suggests that Solana is the “most beloved altcoin among investors,” as reported by CoinShares.
In the Digital Asset Fund Flows weekly report dated September 4, CoinShares’ Head of Research, James Butterfill, highlighted that trading volumes for cryptocurrency investment products for the week ending September 1 were 90% higher than the year-to-date average. Coin product outflows also decreased to $11.2 million during this period.
This positive trend follows a seven-week period of negative sentiment, during which $342 million exited cryptocurrency products. However, year-to-date, investment products have remained in a net inflow positive position, with a total of $165 million inflow.
Solana products have remained resilient to the outflows, consistently recording weekly inflows of $700,000. This marks the ninth consecutive week of such inflows, accumulating a total of $14.1 million during this period and year-to-date inflows of $26 million.
Bitcoin (BTC), currently valued at $25,658, was the sole asset to experience weekly inflows, amounting to $3.8 million. In contrast, Short BTC, Polygon (MATIC) at $0.5515, and Ethereum (ETH) products all registered weekly outflows.
Solana’s recent influx of capital coincides with a series of positive developments connected to the network.
On September 1st, Rune Christensen, the co-founder of MakerDAO, proposed building the project’s upcoming native chain using a fork of Solana’s codebase, despite its historical affiliation with Ethereum. Additionally, on August 23rd, it was reported that Shopify had integrated the Solana-based payment network, Solana Pay, into its payment options, starting with the stablecoin USD Coin (USDC) priced at $1.00.
Furthermore, the Solana network has demonstrated improved performance and reliability, experiencing just one outage in 2023 thus far.
While SOL’s price has surged approximately 95.5% year-to-date, it has predominantly traded within a range of $20 to $25 since mid-January. As of 12 am UTC on September 5th, it was trading at approximately $19.5, based on data from Cointelegraph.
However, it’s worth noting that SOL has experienced a significant decline of 92.5% from its all-time high in November 2021, when it reached nearly $260.