In a crypto market marked by relative stillness, Solana emerges as the undisputed champion of institutional favor, extending its investment streak to an impressive 27 weeks, according to the latest report from CoinShares.
Despite a subdued atmosphere in the altcoin space, Solana shines as the exception, captivating institutional investors and amassing $5 million in the last seven days alone. This stellar performance contributes to Solana’s title as the “most-loved altcoin of the year.”
James Butterfill, Head of Research at CoinShares, attributes Solana’s success to its strategic partnerships with financial giants like Visa, coupled with its ability to provide ultrafast and cost-effective payments. Although lacking in the user and developer count compared to Ethereum, Solana has managed to secure a special place in the hearts of investors.
The network reached a significant milestone with its highest Total Value Locked (TVL) of the year, hitting $338.82 million, as reported by DefiLlama. SOL, Solana’s native token, experienced a short-term surge, reaching $23.40—a notable 20% increase in a week.
Interestingly, Bitcoin has also reversed its bearish trend, recording a green week in institutional inflows totaling $20.4 million. Factors contributing to Bitcoin’s resurgence include recent controversies surrounding government funding and a correlation with the rise of the 10-year government bond.
Despite the positive momentum, trading volumes remain notably low at $3 billion daily, reminiscent of 2020 levels, indicating a cautious market sentiment.
Regional disparities persist among institutional entities, with the U.S. witnessing outflows of $19 million, Canada reporting buying pressure of $17 million, and Europe experiencing inflows of $23 million.
In stark contrast, Ethereum continues its unenviable position as the “least-loved altcoin,” suffering seven consecutive weeks of outflows totaling $1.5 million and reaching a staggering $114 million offloaded over the year. As Solana continues to shine, Ethereum grapples with ongoing challenges that seem to erode investor confidence.
In the dynamic landscape of cryptocurrencies, Solana’s remarkable performance stands as a testament to the enduring appeal of strategic partnerships and innovative solutions in capturing institutional interest.
