Investors like the look of proof-of-stake coins while Ethereum leads the way.
A new report by the analysis company Coinshares shows that the market slump has not yet ended, but prices are now at a level where stock market investors are again showing signs of interest in digital asset funds.
A report released yesterday by Coinshares shows that several funds saw net inflows after record-breaking week-long outflows in the wake of a crippling, market-wide crypto slump. In total, $ 74 million flowed into crypto investment vehicles in the legacy markets, although not all products showed signs of strength.
Cryptocurrencies have seen inflows after record outflows in the past two weeks.
Market share of Ethereum investment products at a record high of 27% .https: //t.co/xhzVCkBjM9 pic.twitter.com/Dw2WrdA2Rs
– unfolded. (@cryptounfolded) June 2, 2021
While some analysts are calling for Bitcoin to be as low as $ 16,000 per BTC, Bitcoin products were among the worst performers, with net outflows of $ 4 million. The report notes that altcoins – especially greener proof-of-stake altcoins – were strong performers, with Cardano, Ripple, and Polkadot funds each seeing over $ 3 million in inflows.
However, the real star of the report is Ethereum. ETH vehicles recorded a total inflow of $ 47 million, which accounts for the majority of net investments in digital asset funds and increases the market dominance of ETH vehicles to 27%.
Investors’ bullish outlook for the asset comes after a number of bullish reports from academic and institutional financial research departments. Last week, both the University of Pennsylvania and Goldman Sachs wrote a study arguing for Ethereum as a store of value, in part because of its importance to the DeFi ecosystem.
The world’s largest layer-one smart contract platform also has a number of technical advances and headwinds on the horizon. The Arbitrum Layer 2 scaling solution recently went live with a guarded rollout, and the long-awaited EIP-1559 gas tariff revision is planned for later this year, as well as a highly anticipated transition to a proof-of-stake consensus model.