Three altcoins, Solana (SOL), Ripple (XRP), and Cardano (ADA), have been attracting institutional investors and experiencing a surge in market inflows. On the other hand, several other altcoins have been seeing significant outflows.
Digital assets have seen their fair share of turbulence throughout this year, but a select few altcoins are emerging as favorites among investors. CoinShares, a leading digital assets investment platform based in Europe, has provided data indicating that SOL, XRP, and ADA have been favored by institutional players in 2022.
CoinShares recently published its “Digital Asset Fund Flows Weekly” report on October 16th, providing insights into the latest developments. According to the report, XRP saw inflows of $0.42 million last week, marking the 25th consecutive week of inflows for the asset. This achievement is particularly noteworthy considering the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
At the time of this report, XRP is trading at $0.49, currently experiencing losses over the past two months. Similarly, SOL has also seen a significant increase in inflows. CoinShares highlighted that SOL and XRP recorded the highest year-to-date flows among all altcoins, even surpassing Ethereum. Notably, Ethereum recorded outflows of $7.5 million last week, despite its higher market position.
Related Post
This trend is not surprising for XRP and ADA, as both assets have been favored by investors throughout the year. In July, XRP and ADA collectively received inflows of $1 million. XRP witnessed a $10 million increase in inflows, while ADA saw a $6 million increase. In contrast, altcoins like Tezos, Litecoin, and Chainlink experienced outflows of $0.25 million, $0.28 million, and $0.31 million, respectively.
Bitcoin, the leading cryptocurrency by market cap, remains a popular choice among institutional players. The asset encountered inflows of $16 million within the last week, while short-Bitcoin positions attracted inflows of $1.7 million. The total inflows for the year have reached $260 million.
Despite the challenges faced by the crypto market this year, CoinShares’ report indicates a brighter investment landscape. Digital asset investment products have experienced three consecutive weeks of inflows totaling $15 million. This growth is encouraging; however, trading volumes still remain significantly below the yearly average of 2023, estimated to be 27% lower.
It is important to note that while altcoins like SOL, XRP, and ADA have attracted attention from institutional investors, investors should conduct their own research before making any investment decisions. The cryptocurrency market remains highly volatile, and market conditions can change rapidly.
In conclusion, SOL, XRP, and ADA have emerged as favorable altcoins among institutional investors, experiencing a surge in market inflows. These assets have outperformed others in terms of institutional interest, while Ethereum has seen outflows despite its higher market position. Bitcoin continues to lead the market, attracting significant inflows from institutional players. However, it is essential for investors to exercise caution and conduct thorough research before making any investment decisions in the volatile cryptocurrency market.
