Crypto Enthusiasts Predict Surge in Solana Value as Institutional Investments Skyrocket Amid Market Caution – ZyCrypto

Within the tumultuous past week, crypto assets have endured a rocky journey, amassing substantial outflows from both institutional and retail investors. Alongside giants such as Bitcoin (BTC) and Ethereum (ETH), Solana also witnessed a downturn in its weekly performance despite earlier bullish momentum. Nonetheless, a spike in institutional interest in Solana has fueled a bullish sentiment among investors.

Solana Garners Weekly Investment Inflows

Defying the downtrend seen across most altcoins, Solana managed to secure weekly inflows of investment. The recent CoinShares Weekly Fund Flows Report indicates a global crypto asset inflow of $48 million over the past week, marking a steep reduction from prior achievements. Amid substantial withdrawals by high-profile investors, the aggregate crypto market capitalization plunged by 7%, with billions being wiped out in mere days.

Despite these conditions, Solana continued to attract investments, registering incremental gains. Last year, the digital asset consistently achieved growth, spurred by heightened anticipation for U.S. spot ETF approvals. CoinShares data revealed that SOL experienced a net inflow of $15 million towards its funds, propelling its monthly gains back to $14 million. Presently, the total assets under management (AUM) have exceeded $1.59 billion.

Market traders regard these positive movements as a driving force for escalating SOL demand, noting that the asset often recovers more swiftly than the broader market. This has led to predictions of a considerable surge in its value during the next bullish peak. In the last day, the crypto market has seen a rebound, with many on-chain indicators turning positive.

SOL is currently trading at $212, showing a more than 5% appreciation in value, which effectively counters the past week’s outflows. Cardano (ADA), akin to SOL, achieved rapid gains, with market participants capitalizing on daily trading opportunities to establish new positions. Commonly referred to as the ‘ETH killer,’ Cardano has reached a trading price of $1.13, reflecting an increase of 5.7% as of today.

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Ethereum’s Struggles Persist

While some altcoins enjoyed marginal gains on the institutional front, Ethereum (ETH) continued to experience challenges. ETH registered a substantial $255 million net outflow over the past week, affecting its stance compared to Bitcoin and various other assets. The outflows coincided with whale disposals, prompting them to harvest modest profits from their holdings.

With the ETH price dropping below $3,300, significant holders exerted additional selling pressure, impacting market sentiment. Globally, the market suffered from substantial outflows towards the final part of the week, compounded by macroeconomic influences.

“As nearly US$1 billion flowed in during the week’s initial stages, the unveiling of fresh macroeconomic statistics and the minutes from the US Federal Reserve, which hinted at a firmer US economy and a more assertive Federal Reserve, led to a consequent outflow of US$940 million. This implies that the post-US election grace period has concluded, and macroeconomic figures are once more exerting an influential impact on asset prices,” CoinShares commented.

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