As per a CoinShares weekly report, institutional investors are picking a new interest in altcoins such as Solana(SOL), Cardano (ADA), over flagship cryptocurrency, Bitcoin and largest altcoin, Ethereum. As of the previous week, Solana, a major Ethereum rival, recorded more capital inflows from these institutions than any other cryptocurrency.
CoinShares weekly report also noted that institutional capital inflows into Solana exceeded that of Ethereum in double folds, which contributed to the impressive rally the former displayed throughout last week. $SOL had moved from a week-low of $36 to high of $82 in the same period. Into the new week, SOL continued its rally after slowing its last week’s pace, closing at a high of $79 on Monday. The altcoin, which currently ranks as 10th on the list of top 10 cryptocurrencies by market cap, has retraced to $71, falling by 4.9% as of Wednesday in the wake of a general market correction after the greed index was activated.
$SOL Closes Previous Week With $7.1 Million Inflows, ADA’s Inflows at $6.4 Million
Solana, which boasts of higher transaction throughput and low fees on its blockchain compared to Ethereum, received capital inflows estimated at $7.1 million the previous week.
On its part, Ethereum rounded off the previous week with estimated capital inflows of $3.2 million, a little below half of Solana’s. Other altcoins, namely Cardano (ADA), Litecoin (LTC) and Polkadot (DOT) posted inflows as well. But ADA’s inflows ranked second after Solana ending with a total of $6.4 million, while $LTC and $DOT closed the week with $1.8 million and $1.1 million, respectively.
Available data shows that within the last two weeks, Solana has witnessed a 93% growth while Ethereum is trailing behind with a mere 11% gain. Meanwhile, Cardano is likewise moving at breakneck speed creating and smashing milestones on its way to a new all-time high.
ADA Prepares for Race to $3
ADA ended Monday with a high of $2.98, almost confirming predictions for a $3 price mark or even beyond, as momentum builds up for a major upgrade on Cardano. The highly-anticipated Alonzo upgrade, touted to enable smart contracts feature for Cardano, is due for full deployment by September 12, according to Charles Hoskinson, the blockchain’s founder.
Due to being in the overbought area, a 40% correction is expected on ADA before making further moves. ADA closed the previous week at a high of $2.55.
For Bitcoin, the top crypto asset has experienced outflows consecutively in the last seven weeks, ending the seventh (last week) with an approximate outflow of $2.8 million. CoinShares reported this is the result of negative sentiment,
Bitcoin corrected from above the $50k mark to a 2-day low of $47,160, and is currently ranging above the $48k zone. Greed index was already above 70, which is considered by traders as the threshold. Anything above 70 is an indication that traders would begin securing maximum profits by selling all or part of their assets in a bid to buy at a lower price.
