Solana, Ethereum dominate crypto inflows as institutional demand for altcoins skyrocket
|- Altcoins have gained a larger share of last week’s institutional crypto investment product inflows.
- Ethereum has been leading the altcoin pack as ETH continues to gain dominance.
- Solana witnessed record inflows last week, doubling its total inflows year-to-date.
Cryptocurrency investment products witnessed an inflow of $98 million last week, marking the third consecutive week, indicating that investor sentiment has continued to be positive. Ethereum and Solana have taken the lead in weekly inflows, as altcoins have gained popularity among institutional investors.
Institutional investor sentiment turns positive as market recovers
Institutional investors have turned their attention to altcoins, as the altcoin market share now represents 35% of capital locked in digital asset investment products, according to a CoinShares report.
As institutional demand for altcoin exposure continues to rise, altcoins accounted for 40% of last week’s inflows into cryptocurrency investment products.
Ethereum has seen the third week of inflows with a total of $14.4 million, leading the altcoin pack with a record market share at 28%. Although some investors have concerns about the protocol, ETH dominance continues to climb.
Following Ethereum, Solana witnessed weekly inflows totaling $13.2 million, doubling its total inflows year-to-date. SOL-based investment products saw a 388% increase last week, as its price gained in tandem by roughly 37%. According to CoinShares, Solana products now represent $44 million in total assets under management.
Other altcoins, including Cardano, Polkadot and Ripple, witnessed inflows of $6.5 million, $2.7 million and $1.2 million respectively.
On the other hand, Bitcoin has also seen inflows of $59 million, suggesting that the sentiment has turned positive among investors following weeks of consecutive outflows.
Solana price aims for $200 next
Solana price has recorded another all-time high at $178, as it continues riding the bullish momentum higher. As the altcoin has become a front-runner in the crypto market, the next target for SOL seems to be at $198, which sits near the 161.8% Fibonacci extension level.
Investors should note that while Solana price continues to trend higher, the Relative Strength Index (RSI) suggests that SOL could retrace slightly before resuming its rally. The Arms Index (TRIN), which compares the number of cryptos advancing and declining also indicates that the power could be slightly shifted to the bears as more selling activity is taking place.
SOL/USDT 4-hour chart
The first line of defense for the altcoin is at the 127.2% Fibonacci extension level at $160, then at the 20 four-hour Simple Moving Average (SMA) at $141.
Further support may arise at the 50 four-hour SMA at $114 should SOL investors take profit, pushing Solana price lower, before tagging the 78.6% Fibonacci extension level at $106.
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