Solana emerges as institutional investors' favorite crypto in 2023; supersedes XRP, Litecoin
- Solana has been noting inflows from institutional investors, bringing its year-to-date flows to $25 million.
- SOL overtook XRP and Litecoin, which have been making headlines for the SEC lawsuit and halving event, respectively.
- Solana price is up by 5% in the last 24 hours, with the support of its partnership with Shopify.
Even though Solana price action has been weak since the beginning of the year, the cryptocurrency has managed to find its demand among institutional investors. The big wallet holders are liking the asset more than other top altcoins to the point where it is finding more inflows than even Ethereum.
Solana notes institutions' interest
Solana price at the time of writing was up by 5% in the last 24 hours, trading at $21.61, after registering an 18.5% decline in the last ten days. One of the biggest contributing factors has been the recent integration of Solana Pay into Shopify, an E-commerce giant.
Users will be able to pay using cryptocurrencies on the shopping portal with the help of Solana, although initially, only USDC (USD Coin) is supported.
This development also triggered a bullish response from investors, which prevented the altcoin from slipping further. The Relative Strength Index (RSI) shows that SOL was very close to being oversold, last noted back in mid-June. Signs of waning bearishness could be observed on the Moving Average Convergence Divergence (MACD) indicator as well; however, a bullish signal is yet to emerge. This signal may not be too far either since Solana is one of the institutional investors' favorite assets.
SOL/USD 1-day chart
Comparing Solana’s institutional inflow
Since the beginning of the year, SOL has noted higher inflows than the likes of XRP, LTC and even Ethereum.
Ripple and Litecoin were two of the biggest talked about assets owing to the SEC lawsuit and halving event, respectively. However, investors chose to lean into SOL over these assets.
Year to date, Solana has recorded about $25 million worth of inflows, which is more than LTC, SOL, TRX (Tron) and ADA (Cardano) combined. The week ending August 18 did not note any inflows for the asset, but it also did not record any outflows like Litecoin did.
Solana institutional investment
This is a positive sign for the asset, as institutional presence would serve as a major boost to any cryptocurrency. While the likes of Bitcoin and Ethereum will always find support from retail investors, Solana could grow quickly if it remains the institution's top pick.
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Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
