The past week has brought forth a fascinating shift in the digital asset landscape as crypto trends keep evolving. Crypto investors have invested a staggering amount of $179 million over the past four weeks.
Latest report by CoinShares sheds light on the changing tides within the altcoin realm. While Bitcoin continues to be the most popular, a new star has emerged: Solana.
As per data, Solana is now leading the charge in the altcoin arena. This revelation will surely raise eyebrows in the crypto space.
The report underscored that $55.3 million was alone allocated to Bitcoin. It constituted about 84% of the total new in-flows. These inflows have pushed the yearly number to $315 million. This is a testament to Bitcoin’s dominance in the crypto market.
However, the twist in this narrative lies in Solana’s rise. The report revealed that Solana in-flows were only next to Bitcoin, at an impressive $15.5 million last week. This has propelled its yearly total to $74 million. To many’s surprise, this modest altcoin has now solidly established itself as the darling of investors in 2023.
Ethereum losing its grip?
On the other hand, Ethereum, the undebatable titan of the altcoin world, faces an uncertain path. The total assets under management stand at $6.7 billion after it witnessed a net outflow of $7.4 million last week.
Cryptocurrency fortunes often move because of external factors, such as the highly anticipated U.S. spot Bitcoin ETF launch. However, the report points out that the initial inflows in June after BlackRock’s announcement were much higher than what we are seeing now.
While the most recent inflows are likely linked to excitement over a spot Bitcoin ETF launch in the U.S., they are relatively low in comparison to the initial inflows following BlackRock’s announcement in June.CoinShares Head of Research, James Butterfill
In-flows because of upcoming Spot-Bitcoin ETF?
Indeed, the market’s optimism regarding spot Bitcoin ETFs has injected enthusiasm into the world of digital assets. News of potential developments in BlackRock’s iShares Bitcoin Trust and Grayscale’s legal victories have further uplifted market sentiment.
However, Ethereum’s outflows, suggest growing investor caution, possibly tied to scalability or fee concerns. these patterns of digital asset inflows offer a vital glimpse as the sector waits with bated breath for the spot Bitcoin ETFs to be approved.