CoinShares’ Report Reveals Why Solana is The ‘Most Loved Altcoin’ of The Year

    Solana has continued attracting consistent inflows for the past nine consecutive weeks, defying the trend of outflows in other crypto investment products.

    Solana investment products have soared with an impressive $26 million influx since the beginning of 2023, outshining all other altcoins, including Ether. These remarkable figures not only position Solana as the undisputed favorite among investors but also validate it as the “most loved altcoin amongst investors” according to CoinShares. 

    In the latest Digital Asset Fund Flows weekly report on September 4, James Butterfill, CoinShares’ head of research, highlighted that trading volumes for crypto investment products during the week ending September 1 were a staggering 90% higher than the year-to-date average. Furthermore, the report revealed a significant drop in crypto product outflows, amounting to just $11.2 million.

    Source: CoinShares

    In an impressive streak of positive sentiment, Solana investment products have continued to thrive, witnessing weekly inflows of $700,000 for the ninth consecutive week, totaling $14.1 million. Notably, Solana’s year-to-date inflows have reached a remarkable $26 million, unaffected by the recent outflows that have plagued other crypto products. Bitcoin products also experienced weekly inflows, amounting to $3.8 million, while Short BTC, Polygon, and ETH products faced weekly outflows.

     Source: CoinShares
     Source: CoinShares

    These influxes into Solana come amidst promising developments for the network. MakerDAO co-founder Rune Christensen recently proposed to adopt Solana’s codebase for their upcoming native chain, despite their longstanding association with Ethereum. Additionally, Shopify has integrated the Solana-based payment network, Solana Pay, into its payment options, starting with the stablecoin USD Coin. The Solana network has also demonstrated improved performance and reliability, with only one outage reported thus far in 2023.

    Although SOL’s price has primarily traded sideways between $20 and $25 since mid-January, it has witnessed a notable 95.5% year-to-date increase. As of 12 a.m. UTC on September 5, SOL was trading around $19.5, according to Cointelegraph data. Despite being down 92.5% from its all-time high of nearly $260 in November 2021, Solana’s consistent inflows and the positive developments surrounding the network make it an enticing investment opportunity.

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