Why Solana Is The Most Loved Altcoin Among Investors?
By Kapil Rajyaguru
Among several cryptocurrencies, Solana was touted to challenge ether with an eco-friendlier approach, faster transaction speeds and more consistent costs. These factors are strong enough to drive prices of any token. But in case of Solana, its fortune fluctuated with changing time….
Unfortunately Solana has lost over $50 billion in value since the beginning of 2022, a year marked by outages, overloads, and significant exposure to Sam Bankman-Fried’s FTX exchange.
Bankman-Fried’s companies held nearly $1.2 billion worth of the token and associated assets. When FTX fell apart, investors bailed on Solana to the tune of about $8 billion.
Since then, interest in altcoins may have waned as big crypto investors pull cash out of funds, but there is one coin which still has them excited and it’s none other than Solana.
Over the past seven weeks, investors have largely withdrawn from crypto investment products, European digital asset manager CoinShares said in a Monday report.
For the past nine weeks, institutional investors have been plugging cash into the 10th biggest digital asset by market cap, Solana (SOL).
CoinShares said that $700,000 had been invested over the past week into SOL via crypto investment providers—making the cryptocurrency “the most loved altcoin amongst investors at present.”
Why we are terming SOL as the most loved altcoin……If you consider year-to-date fund inflows in the protocol, it currently stand at a whopping $26 million.
In contrast, investors in the past week pulled $8.6 million out of Polygon investment products and $3.2 million out of Ethereum.
Investors did put $3.8 million into Bitcoin, the biggest digital asset by market cap, and pulled out of short Bitcoin products for the 19th consecutive week.
Solana has been getting some traction lately because MakerDAO’s co-founder and CEO Rune Christensen suggested launching the project’s new chain on a Solana-based platform. This will lead to more network activity and transactions on Solana Blockchain which can be translated into the rise of SOL token.
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