Solana (SOL), a once highly favored altcoin, is clawing its way back after a rough patch. Network outages had dented investor confidence, leading to sluggish inflows into Solana-based investment products despite a surging overall market in 2024. However, a recent report by CoinShares signals a potential turning point.
According to CoinShares’ “Digital Asset Fund Flows Weekly Report,” Solana raked in nearly $24 million over the past week. This positive inflow comes after a period of “negative sentiment” surrounding the network’s outages. This stands in contrast to Ethereum, the current leader in year-to-date inflows, which saw minor outflows of $2.1 million last week.
Broader Market Rally Propels Growth
The crypto market as a whole is experiencing a boom. Investment products focused on digital assets witnessed a record-breaking $2.7 billion in weekly inflows, pushing the year-to-date total to $10.3 billion. This is just shy of the 2021 record of $10.6 billion. Weekly trading volume also hit new highs, reaching $43 billion, while total assets under management (AuM) climbed to a historic $94.4 billion. This represents a significant 14% increase over the past week and a staggering 88% rise year-to-date.
Bitcoin Shorts Persist Despite Price Gains
Bitcoin (BTC) remains the center of investor attention, attracting $2.6 billion in inflows last week. This brings year-to-date inflows for Bitcoin to 14% of the total AuM. Interestingly, despite recent price increases, shorting Bitcoin continues, with an additional $11 million entering short positions last week.
The United States emerged as a major source of investment, contributing $2.8 billion in inflows. Switzerland and Brazil followed with $21 million and $18 million, respectively. However, some regions saw profit-taking, with Canada, Germany, and Switzerland experiencing outflows of $35 million, $77 million, and $39 million, respectively.
Also Read: Meme Coin Mania: Shiba Inu Soars 270% in a Week, Outperforms Dogecoin, Solana, XRP, BNB in Volume
Solana’s Rebound: A Sign of Renewed Confidence?
Solana’s recent inflow surge suggests a potential shift in investor sentiment. While it’s too early to declare a complete comeback, this positive development is a welcome sign for the altcoin. With the broader market continuing its bullish run, Solana could be poised for a strong resurgence in the coming months.
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