Solana is in demand as a wave of NFT platforms and decentralized finance (DeFi) developers are looking for cheaper alternatives to Ethereum
Professional traders rushed to Solana as interest in Bitcoin and Ethereum waned last week.
Solana, the lower-cost Ethereum alternative, has been “a mainstay” in the most recent trade, according to CoinShares, which released its weekly report on digital asset flows.
CoinShares highlighted that the price of Solana exceeded a basket of the top ten digital assets by about 34% as the price of crypto increased by 24% from week to week and the cash inflow in Solana of plus $ 50 million over the other cryptos overshadowed.
A meager $ 200,000 in institutional money tracked by CoinShares flowed into Bitcoin, while about $ 6.3 million came from Ethereum over the course of the week. Overall, CoinShares posted a net inflow of $ 57 million in digital assets last week, marking the fourth straight week of net inflows.
There was a $ 3.5 million inflow into Cardano as the blockchain platform completed its much anticipated “hard fork” to introduce smart contracts.
CoinShares’ Digital Asset Flow Report tracks the transactions of investment product providers in the digital asset industry, including its own and among its competitors such as Grayscale, 3iQ and 21Shares.