Etherum competitor Solana — a decentralized blockchain platform that earlier this month became the seventh-largest cryptocurrency in the world ahead of Dogecoin – has remained favourite digital asset among investors globally. The cryptocurrency attracted $49.4 million – 86.4 per cent of total inflows worth $57.2 million last week into different digital assets including bitcoin, ethereum, binance, ripple, cardano, and others, according to the weekly report on digital asset fund flows by digital asset management firm CoinShares. Last week was the 4th consecutive week of inflows into digital assets that meant investors have been hoarding cryptos in their portfolios for the past four weeks.
During last week’s price falls, Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34 per cent and having risen 24 per cent week-on-week, CoinShares said. Importantly, a combination of price appreciation and inflows brought Solana’s assets under management (AUM) to $97 million — 5th largest of all digital assets — while bitcoin’s AUM and ethereum’s AUM stood largest at $37,215 million and $14,914 million respectively. Solana was trading at $159.60 at the time of filing this report with a market cap of $47.4 billion, as per data from CoinMarketCap.
However, bitcoin’s inflows remained flat for the week with a paltry $0.2 million while ethereum saw minor outflows totalling $6.3 million. Volumes in investment products grew 143 per cent since their lows in early July to $3.8 billion, the report noted. This rise in volumes and inflows indicated that investors are now beginning to be more active following the seasonal summer gloom. CoinShares added that the trend of diversification remains intact amongst investors with inflows into cardano, multi-asset, XRP, and polkadot totalling $3.5 million, $3.2 million, $3.1 million, and $1.7 million respectively.
Solana’s origin date back to 2017 when founder Anatoly Yakovenko published a whitepaper draft about a new timekeeping technique for distributed systems called Proof of History (PoH), according to messari.io. He believed that the technique can automate the transaction ordering process for blockchains as one of the limitations to scalability in bitcoin and ethereum is the time need to reach a consensus on the order of transactions. Solana Labs, the developer of Solana blockchain had announced a $314 million funding round in June led by venture capitalist Andreessen Horowitz and Polychain Capital.