Solana suffers $3 million ETP outflows post-outage as Bitcoin responsible for 95% of inflows News ▸ Solana ▸ Technology
Solana suffers $3 million ETP outflows post-outage as Bitcoin responsible for 95% of inflows
The US continues to dominate investors interest, with year-to-date flows of over $6 billion.
2 min read
Updated: Feb. 26, 2024 at 5:58 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Solana’s recent outage appears to be weighing heavily on investors’ minds, with crypto investment products related to the blockchain network seeing outflows of $3 million during the past week.
CoinShares’ latest weekly report showed the network as the only major digital asset that recorded negative flows for the duration, blaming it on how “recent outages for Solana have likely impacted sentiment.”
On Feb. 6, Solana experienced an outage that halted blockchain transactions for five hours due to a bug that pushed it into an infinite loop. While a patch was promptly developed, community members pointed out that the network has a rich history of outages in the past.
Crypto products see a $598 million inflow
While Solana experienced outflows last week, other digital asset investment products saw inflows totaling $598 million for the fourth consecutive week. This brought the year-to-date flow for these investment vehicles to $5.7 billion.
James Butterfill, CoinShares head of research, pointed out:
“[The] total assets under management (AuM) peaked at $68.3 billion [earlier in the week], the highest point since December 2021, although still a way off the $87 billion all-time high seen in November 2021.”
According to the report, Bitcoin experienced significant inflows of $570 million last week, representing 95% of all flows to these investment products during this period. BTC’s year-to-date flows stand at an impressive $5.6 billion.
Notably, BTC’s recent positive market movement enticed investors to bet against a further upward price trajectory, with $3.9 million inflows to short Bitcoin products.
Other assets like Ethereum, Chainlink, and Riple’s XRP saw inflows of $17 million, $1.8 million, and $1.1 million, respectively.
Across regions, the United States continues to dominate the weekly inflows despite Grayscale’s substantial $436 million outflow for last week. Other crypto-related investment products in the country, including the recently launched Bitcoin exchange-traded funds (ETFs), contributed to a healthy inflow totaling $610 million.
Meanwhile, countries like Brazil and Switzerland experienced modest inflows of $8.2 million and $2.1 million, respectively. However, Canada and Sweden faced outflows, with $18 million and $8 million leaving their crypto markets, respectively.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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