Solana has distinguished itself as a shining star in the crypto market, which is defined by ups and downs, with a remarkable run of nine straight weeks of inflows, defying the trend that has seen other crypto investment products experience outflows. Overtaking all other cryptocurrencies, including Ethereum itself, Solana has garnered a remarkable $26 million in investments from the year 2023. Because of this behavior, Solana has been called by CoinShares as the “most beloved altcoin among investors.”
CoinShares’ head of research, James Butterfill, noted in a Digital Asset Fund Flows report dated September 4th that trading volumes for crypto investment products during the week ending September 1st were an astounding 90% higher than the year-to-date average. The cryptocurrency investment sphere, which had witnessed seven weeks of negative sentiment causing $342 million to exit crypto products, appeared to be undergoing a shift. Despite the recent outflows, the year-to-date figures reflect a positive net inflow of $165 million.
Solana’s Success Amid Positive Developments
Solana’s ability to maintain inflows in the face of broader market fluctuations can be attributed to a series of favorable developments within the Solana ecosystem. MakerDAO co-founder Rune Christensen recently proposed the project’s upcoming native chain to be built on a fork of Solana’s codebase, a notable endorsement of Solana’s capabilities. Additionally, e-commerce giant Shopify integrated the Solana-based payment network, Solana Pay, into its payment options, starting with the stablecoin USD Coin.
Related: Shopify Integrates Solana Pay to Accept USDC Payments
Moreover, the Solana network has displayed enhanced performance and reliability, with just one outage recorded in 2023. Despite Solana’s year-to-date price increase of approximately 95.5%, its price has largely ranged between $20 and $25 since mid-January, currently hovering around $19.5 as of September 5th, though it remains 92.5% down from its November 2021 all-time high of nearly $260.