The crypto market got some surprising news recently. Institutional investors strongly prefer Solana over traditional giants Bitcoin and Ethereum. Despite an overall market trend of net outflows in digital assets, Solana has managed to capture the attention of institutional players, outshining its more established competitors.
According to a recent report from CoinShares, the crypto market saw a net outflow of $16 million last week, marking the end of 11 consecutive weeks of inflows.
Most outflows were from Bitcoin, which experienced a notable downturn from $19.8 million in inflows the previous week to $32.8 million in outflows.
Ethereum also saw outflows of $4.3 million. However, the standout performer amidst this trend was Solana, which experienced a remarkable 240% increase in net inflows, reaching $10.6 million.
Solana’s Resilience and Year-to-Date Performance
Solana’s ability to attract institutional investment during a period of profit-taking indicates a vote of confidence from institutional investors. Despite the brief period of consolidation and profit-taking across most cryptocurrencies, Solana has continued to dominate the institutional space, showing its strength since October.
Solana’s impressive performance throughout the year has been a defining factor in its appeal to major investors. The native SOL token has surged by over 520% since the beginning of the year, currently trading at $112.72, marking a yearly high. Additionally, decentralized finance total value locked (TVL) on the Solana blockchain has seen an impressive 73% increase in the past 30 days.
Geographical Trends and Predictions
The report also highlighted geographical trends in institutional investment behaviour, with the United States witnessing the most significant outflow of $18.3 million, followed by Germany with $9.7 million. On the other hand, Solana has managed to attract $10.6 million in institutional inflows, further solidifying its position as a preferred choice among institutional investors.
Crypto analysts are optimistic about Solana’s future trajectory, with some setting a price target of $140 based on technical analysis. SOL’s current momentum and potential to revisit the $200 mark shows the bullish sentiment around Solana.
Institutional investors are looking beyond the traditional crypto blue chips and finding value in the promising performance of Solana. The crypto’s resilience, year-to-date gains, and positive institutional attention position it as a noteworthy contender in the crypto sphere. As the market adapts, Solana’s rise in institutional favour shows the dynamic nature of investors in the crypto space.