Solana Products See Strong Inflows, Bitcoin And Crypto Lose $107 Million
August 07 2023 - 9:00AM
NEWSBTC
The past week has painted a vivid picture of shifting investor
sentiment worldwide. While Bitcoin and the broader cryptocurrency
market witnessed a significant outflow of funds from investment
products like ETPs, ETFs and funds, Solana (SOL) emerged as a
beacon of hope for altcoin enthusiasts. A Dive Into The Numbers By
Crypto Products Digital asset investment products experienced a net
outflow of $107 million this week, a figure that underscores the
growing trend of profit-taking that has been evident in recent
weeks. “Digital asset investment products saw outflows this week,
totalling $107m with profit taking gathering pace in recent weeks,”
James Butterfill noted in his recent report published in
CoinShares’ blog. Bitcoin, the de facto king of cryptocurrencies,
bore the brunt of these outflows, seeing a staggering $111.4
million leave its coffers. This marks the “largest weekly outflows
since March,” a time when US regulatory scrutiny began to
intensify. Interestingly, for the first time in 14 weeks, the
outflows into short bitcoin positions have also come to a halt.
Related Reading: Solana Price Could Surge To $30 Upon Overcoming
This Resistance Ethereum wasn’t spared either. The second-largest
cryptocurrency by market capitalization saw outflows totalling $5.9
million, bringing the combined outflows for both Bitcoin and
Ethereum to $117.3 million in just the past week. Solana Is The
Rising Star Amidst this backdrop of outflows, Solana stood out, not
just for its resilience, but for its impressive inflows. The
altcoin witnessed the “largest inflows, totaling $9.5m, the largest
single week of inflows since March 2022.” This surge in interest
has propelled Solana’s Assets Under Management (AUM) to $89
million. With month-to-date inflows equalling $9.5 million and
year-to-date inflows at $25 million, Solana is clearly on an upward
trajectory. To put this in perspective, Bitcoin has the largest AUM
with $24,136 million, followed by Ethereum with $7,820 million and
multi-asset investment products with $3,060 million. Litecoin ($134
million) and Bitcoin Short ($104) also have bigger AUM than Solana.
However, Solana’s AUM has now surpassed that of established
altcoins like XRP ($74 million), Cardano ($28 million), and Polygon
($24 million). Related Reading: Solana (SOL) Records Positive Moves
As Bears Took Control, What’s Pushing It? While Solana basked in
the limelight, other altcoins had a mixed week. XRP and Litecoin
registered modest inflows of $0.5 million and $0.46 million
respectively. However, Uniswap and Cardano weren’t as fortunate,
witnessing outflows of $0.8 million and $0.3 million respectively.
Regionally, the outflows were predominantly concentrated among two
ETP providers in Germany and Canada, which saw outflows of $71
million and $29 million respectively. SOL Price Analysis At press
time, the Solana (SOL) price was trading at $23.05, above the
200-day EMA. If SOL manages to defend the 200-day EMA in the
following days and confirm the breakout from the descending
triangle, the chart looks very bullish. The next resistance level
can be expected at the 50% Fibonacci retracement level ($24.00),
before another move to the 61.8% Fibonacci level at $27.44 seems
possible. Featured image from iStock, chart from TradingView.com
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