Chayanika Deka
Solana Investor Sentiment Remains Battered With $3M Outflows: CoinShares
Solana-based investment products had seen steady inflows throughout the year after intensive performance and reliability improvements.
However, investor confidence took a hit due to a network outage lasting five hours earlier this month, caused by a bug that caused transactions to enter an infinite loop, thereby impacting the network’s functionality.
Solana’s Troubles Continue
Among altcoins, only investment products tied to Solana experienced outflows, which surged to $3 million in the past week. This latest figure nearly doubles the amount from the previous week, when Solana saw $1.6 million in outflows.
Its rival, Ethereum, on the other hand, saw inflows of $17 million.
During the same period, other altcoins, such as Chainlink and XRP, also attracted $1.8 million and $1.1 million inflows, respectively. Investment products based on Cardano and Litecoin settled with inflows of $0.4 million and $1 million, respectively.
According to CoinShares’ latest edition of Digital Asset Fund Flows Weekly Report, Bitcoin experienced inflows of $570 million last week, pushing its year-to-date inflows to $5.6 billion. However, recent price increases prompted minor inflows into short-bitcoin positions, totaling $3.9 million.
Investment products focused on digital assets saw weekly inflows reaching $598 million, according to CoinShares. This marked the fourth straight week of such inflows. As a result, the year-to-date inflows have exceeded $5.7 billion, constituting 55% of the record inflows observed in 2021.
Earlier this week, the total assets under management (AuM) reached a peak of $68.3 billion, the highest since December 2021, though still below the all-time high of $87 billion recorded in November 2021.
Meanwhile, blockchain equities had a subpar week, experiencing outflows amounting to $81 million, suggesting a degree of caution among equity investors currently.
US Dominates Investment Inflows
In terms of regions, the spotlight remains on the US, where the majority of inflows totaled $610 million, influenced by incumbent issuer Grayscale, which witnessed additional outflows amounting to $436 million last week.
Brazil and Switzerland experienced minor inflows of $8.2 million and $2.1 million, respectively, while both Canada and Sweden saw outflows totaling $18 million and $8 million, respectively. Germany also noted a minor outflow of $0.3 million.
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