The reduced institutional inflows have not impacted the price of Bitcoin as much as we would expect, as the cryptocurrency has sought a bullish fundamental in other aspects.
The recent uptrend in the price of Solana (SOL) has earned it a place of interest amongst institutional investors. According to data from Coinshares, Solana received the largest inflows from investors, way more than any other digital currency profiled. The digital currency ecosystem received a total of US$57m last week, posting their 4th consecutive week of inflows.
In terms of assets inflows per digital currency, Solana took the lead with $49.4 million in the previous week, printing a $51 million inflow in the Month to Date period. The demand for Bitcoin (BTC) and Ethereum (ETH) became flattened as the premier cryptocurrency recorded just a $200,000 inflow atop a $49.7 MTD inflow. Ethereum was worse off in the past week, as investors took out funds rather than add more to it. The digital currency suffered a $6.3 million outflow with the MTD figure coming in at $1.7 million.
“During last week’s price falls Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week,” the Coinshares report detailed, “This was reflected with inflows, dwarfing any other digital asset, totaling almostUS$50m. A combination of price appreciation and inflows now brings Solana’s assets under management (AuM)toUS$97m, the 5th largest of all investment products.”
Despite the Ripple versus the United States Securities and Exchange Commission (SEC) legal hurdle that hung over XRP, it still had a bigger inflow compared to other digital assets. When compared with assets like Litecoin (LTC), and Binance Coin (BNB) which saw no inflows, XRP recorded $3.1 million in institutional inflows in the past week, atop a month-to-date record of $3.4 million.
Impacts of Institutional Investors Buyups on Bitcoin and Solana Price
The reduced institutional inflows have not impacted the price of Bitcoin as much as we would expect, as the cryptocurrency has sought a bullish fundamental in other aspects. In the past week, the digital currency ecosystem recorded a flash crash that suppressed the price of BTC from $52,950 top on September 7 to $42,800 in the succeeding hours. Going by the current price of $45,866.90, the coin appears to have formed support at $45,000, a point of strength for future leaps.
Solana was very resilient through the previous week as the broad market downtrend did not affect the budding hub of decentralized finance (DeFi) and Non-Fungible Token (NFT) network. Atop the heightened institutional investors’ buyup, Solana printed its All-Time High (ATH) of $214.96. However, the price has corrected, and the SOL is currently changing hands at $167.97, up 5.47% in the past 24 hours.
With many digital currencies dependent on the price movement of Bitcoin to chart their own runs, Solana obviously rode on the strength of its embrace by both institutional and retail investors to chart its own course, a trend that is poised to recur in the near future.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
