Ethereum Competitor Solana Leads Digital Asset Weekly Inflows With $7.1M

High-speed blockchain Solana (CRYPTO: SOL) has seen its price appreciate by 100% over one month.

What Happened: The token’s price climbed from just $27 on July 25 to an all-time high of $81 on August 20.

At the time of writing, SOL’s daily trading volume exceeded $1.79 billion, recording a 63% uptick in trading activity over the past 24-hours.

Interest in SOL hasn’t just been limited to retail investors, however. According to CoinShares’ latest report on weekly inflows into digital asset funds, SOL saw $7.1 million inflows last week – the largest amount recorded across all digital assets.

Why It Matters: The Solana blockchain uses a combination of Proof-of-History (PoH) and Proof-of-Stake (PoS) as its consensus mechanism to improve its scalability.

As such, it boasts of “lightning-fast” transaction processing times, with lower fees, and is considered to be a competitor to the leading smart contract network Ethereum (CRYPTO: ETH).

Over the same week, Ethereum saw minor inflows of $3.2 million from institutions, along with altcoins like Litecoin (CRYPTO: LTC) and Polkadot (CRYPTO: DOT), which recorded inflows of $1.8 million and $1.1 million, respectively.

Institutions also appeared to favor another leading Proof-of-Stake coin over the week.

Cardano (CRYPTO: ADA) saw $6.4 million in weekly inflows while also recording a 40% uptick in price over the past seven days.

The price of ADA hit an all-time high of $2.97 on Monday, driven by the momentum from traders anticipating its upcoming Alonzo series of upgrades that are supposed to bring smart contract functionality to the platform.

Meanwhile, the leading digital asset Bitcoin (CRYPTO: BTC) saw $2.8 million withdrawn by institutions marking the seventh straight week of BTC outflows.

Read also: How high can Solana go?

However, CoinShares noted that the recent positive price action in crypto markets has pushed the total assets under management across funds to $57.3 billion, which is the highest level since mid-May.

“Flows across product providers remained mixed, with some continuing to post outflows for the week while others in both North America and Europe posted inflows. We believe this indicates the beginning of a turn in sentiment for digital assets,” they said.

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