BitcoinBTCETHEthereumLINKNewsSOL

Is Solana witnessing a slow start to 2024?

2 Mins read


  • Solana fund outflows were worth $5.3 million last week.
  • Bitcoin took a large share of the inflows amid an imminent spot ETF approval.

The year 2024 started on a good note as digital asset investment inflows recorded $151 million in the first week. However, Solana [SOL] did not contribute much to the funds despite having an impressive year in 2023.

Instead, it recorded more outflows, the CoinShares report revealed.

According to AMBCrypto’s assessment of the weekly report, Solana outflows were worth $5.3 million. There were many reasons for the change in sentiment toward the altcoin. But the notable of them was Bitcoin [BTC] and the price of SOL.

Though the price of SOL has recovered above $100, the previous week was not a good one for it. Based on CoinMarketCap’s data, the SOL price went below $90 in the first week of January. This was one of the reasons why its seven-day performance remained a 10.12% decline.

In Bitcoin’s case, there has been a lot of optimism around the coin. As a result, inflows related to it were worth $113 million out of the total $151 million.

Crypto fund flow with Solana and BitcoinCrypto fund flow with Solana and Bitcoin

Source: CoinShares

Furthermore, AMBCrypto discovered that the anticipation around the spot ETF approval in the U.S. was the major driver of the flow. So, it was not surprising that CoinShares’ Head of Research noted that:

“Despite the spot-based ETF not being launched yet in the US, 55% of the inflows were from US exchanges, with Germany and Switzerland seeing 21% and 17% respectively.”

Also, reports from several sources showed that the approval was almost done. This was also corroborated by Gary Gensler’s post on X on the 8th of January.

In the post, the SEC chair encouraged investors to be careful of crypto assets. Comments from under the post indicated speculation that the crypto-averse regulator had agreed to give the applicants the green light.

Before now, there was speculation that the event would be a “sell the news” one. However, details from the CoinShares report revealed that many participants did not share that sentiment. The report noted:

“If many truly believed that the launch of the ETF in the US would be a “buy the rumor, sell the news” event, we surely would expect to see inflows into short-bitcoin ETPs, instead, outflows over the last 9 weeks have amounted to US$7m.”

Meanwhile, the sentiment around Solana has been changing from what it was last week. To arrive at this conclusion, AMBCrypto checked out the Weighted Sentiment, using Santiment’s on-chain data.

According to Santiment, SOL’s Weighted Sentiment was -0.334 on the 6th of January. However, at press time, the metric has climbed to the positive region.

Solana price and Weighted SentimentSolana price and Weighted Sentiment

Source: Santiment

This resurgence was confirmation that the positive commentary about the project has outweighed the negative ones over the last two days.

Realistic or not, here’s SOL’s market cap in ETH terms

Should the sentiment remain the same till the end of the week, then fund flows linked to Solana may increase.

However, the altcoin might need to fight it out with Ethereum [ETH]. Unlike Solana, Ethereum investment products saw inflows totaling $29 million.


Source

1409 posts

About author
Harry is a crypto enthusiast and experienced trader with a track record of success. With a deep understanding of blockchain technology, he has analyzed market trends and identified profitable opportunities, resulting in impressive returns. Harry 's expertise lies in developing effective trading strategies that leverage the potential of cryptocurrencies. Through his articles, guides, and educational resources, he shares his insights and knowledge, helping individuals make informed trading decisions. With a keen eye for market patterns, Harry has navigated the volatile crypto landscape with confidence. Stay tuned for valuable perspectives and expert advice from Harry as he contributes to the Ailtra platform.
Articles
Related posts
CryptoNews

Indonesia's presidential elections pose uncertainty for the thriving cryptocurrency industry

1 Mins read
Indonesia, has emerged as a formidable player in the global cryptocurrency space in recent years. However, the nation’s upcoming general elections in…
BNBCryptoNews

Understanding the Cryptocurrency Boom - Dogecoin Climbs Due to X Payment Integration, While Stellar and BNB Also Experience Growth

1 Mins read
The cryptocurrency market has been experiencing notable gains over the past few days. This is led by an unexpected and surprising spike…
CryptoNews

Crypto Entrepreneur Charged with Defrauding Investors Out Of $150 Million Through Marketing Scheme

1 Mins read
Federal prosecutors have charged a German businessman with securities fraud, wire fraud and money laundering for allegedly scamming over 150 investors out…

🚀 Ailtra Crypto Bot Earned $8.9M Million in 7 Months with 0% Loss!

🚀 Ailtra generated $7.4 in 7 months only!

Unlock 20-75% Monthly Returns & Get $100 FREE!

Meet Ailtra Bot! Launching on 31st March an AI Crypto Bot boasting 20%-75% monthly gains and $7.5M earnings in 7 months. 💸Secure a FREE $100 bonus and up to $20K potential via referrals every month. 🎉Only 1,000 spots are available in first phase – claim yours fast! 🔥

Ailtra.ai will not disclose your account information to any 3rd parties.