- Solana leads Polkadot, Cardano, XRP and other altcoins with $6.1 million in institutional capital inflows last week, data from Coinshares shows.
- Digital asset investment products noted $862 million in inflows, with Bitcoin leading and only $18.3 million directed towards altcoins.
- Solana's price lost nearly 6% on the day as on-chain activity declines after the spike seen in the last week of March.
Solana’s (SOL) price falls sharply on Tuesday, influenced by the steep decline in Bitcoin prices, even though the altcoin registered $6.1 million in inflows from institutional investors last week. While the recent meme coin frenzy may have benefited Solana and attracted capital last week, a recent drop in on-chain activity and a slowdown in inflows could be behind the recent price decline.
Solana leads recovery in institutional capital inflow
Data from European alternative asset manager CoinShares, shows that digital asset investment products saw a recovery in sentiment last week, with institutional capital inflows totaling $862 million. This marks nearly a complete recovery compared to the prior week’s record $931 million outflows.
Most inflows to cryptocurrency markets were due to Bitcoin, which registered a $865 million capital inflow. Meanwhile, altcoins saw a combined inflow of $18.3 million, with Solana leading the pack ahead of XRP, Chainlink, and Polkadot.
Flows by asset.
While Solana-based funds observed a $6.1 million weekly inflow, on-chain activity on the chain has registered a sharp decrease. On-chain data from the Block shows that the number of new addresses and active addresses on Solana are in a downward trend since the six-month high seen on March 22.
Number of Active Addresses on Solana
Solana price dips following BTC correction
Bitcoin price suffered a decline to $66,000 early on Tuesday on account of massive liquidations across derivatives exchanges. BTC’s price decline ushered in a correction in large market capitalization assets, including Solana.
Solana price is down nearly 6% on the day despite the Solana based meme coin rallies and user activity in assets like Book of Meme (BOME), Cat in a dogs world (MEW) and Tombili the Fat Cat (FATCAT). Find out more about these assets here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Litecoin Price Forecast: LTC hits $130 for first time in almost three years as open interest soars
Litecoin price grazed the $130 mark on Monday, propelled by improved sentiment around privacy-focused coins after a United States (US) court reversed sanctions placed on Tornado Cash.
Bitcoin: $100K breakout or drop to $90K ahead of Microsoft’s BTC investment vote?
Bitcoin price retraces to $95,000 on Monday after recovering from last week’s pullback. MicroStrategy co-founder Michael Saylor explained a strategic approach to Bitcoin on Sunday.
Ripple surges to a six-year high just below $2.50
Ripple (XRP) price extends its gains, trading above $2.40 at the time of writing on Monday after rallying more than 60% the previous week and surging almost four times in November.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH, XRP rallies
Bitcoin consolidated on Monday following its recovery from last week's pullback. At the same time, Ethereum and Ripple extended their rallies, driven by investors reallocating capital from BTC to altcoins, signaling the potential for continued upward momentum.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.