Institutional Investors Are Loading Up On Solana
This last week 33% of total institutional investments in crypto-related projects were Solana-based. The newly released Coinshares report on virtual assets reveals that between August 15 and 20, 2021, Solana inflows were estimated to be $7.2m.
SOL Price Doubles In Less Than One Month
SOL has surged by about 1.5% on spot markets between the period mentioned above. But its price since the start of this month has more than doubled and now trades at about $76. The report further revealed that this past week represented the lowest volume (about $22m worth of cryptocurrencies) of outflows from the crypto market by institutional investors.
Their outflows have been massive for almost two months now. SOL’s inflows were followed closely by ADA’s inflows this past week. Institutions invested about $6.5m into ADA, while they also invested about $3.3m, $1.9m, and $1.2m in ETH, LTC, and DOT, respectively.
Digital asset inflows. Source: Coinshares
However, there were institutional outflows for bitcoin – the seventh week that has been happening for the king coin. The report also revealed that the value of crypto assets with crypto-related asset management firms soared to about $58.4B because of the market’s bullishness.
This figure represents a multi-month peak following its all-time high of $66.5B in May 2021. However, grayscale asset management’s assets under management of $43.7B makes it hold the highest amount among other crypto-related asset managers. The report further noted that there weren’t many differences between flows of asset providers.
Solana Maintains Bullish Momentum
Launched four years ago, Solana aims to be the blockchain of choice for scaling transactions with a distributed system. The blockchain has been fulfilling this objective by combining various outstanding features, especially its optimized BFT versions.
While Ethereum remains the number one choice for DeFi smart contracts, Solana is gradually catching up. It has already surpassed other lay one chains (like Polkadot and Binance Smart Chain) in decentralization.
Solana’s bullish performance trend. Source: TradingView
However, new projects are now being built on Solana as the blockchain enables fast transactions and doesn’t charge as many fees as Ethereum. Hence, there has been a proliferation of DApps in the DeFi community, such as stablecoin swap projects, yield aggregators, and decentralized exchanges. Also, more NFT market platforms (for NFT-related derivatives, games, and wallets) are now on the chain.
More Positives For Solana
Solana is also experiencing an influx of system protocols for block exploration, launchpads, and data analytics. One reason for the fast rise of this blockchain is that it provides the best solution to the blockchain scalability issues, which has been the biggest drawback to DeFi’s growing popularity and adoption.
However, what differentiates Solana from Ethereum is that Ethereum’s solidity programming language makes it EVM compatible while sol’s rust programming language doesn’t make eve=m compatible. Nevertheless, most new DeFi projects prefer Solana to Ethereum. The good news is that Solana’s programming language might soon be EVM compatible as Neon Labs are planning to incorporate a solidity smart contract on the Solana system.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
