In a surprising turn of events, Solana (SOL), often touted as the "Ethereum Killer," experienced an extraordinary week in the volatile crypto market, marked by a staggering 38% surge in its price.
This remarkable rally propelled SOL's value to $31.38 per token, a level unseen since mid-July, when it briefly touched $33. The surge made Solana one of the most-talked-about assets in the digital currency sphere last week.
What truly set this rally apart was the unprecedented influx of investments into SOL-oriented products. According to the latest weekly report by CoinShares, flows into Solana-related ETPs skyrocketed by an astounding 420% within a week, totaling an impressive $15.5 million.
This marked a stark contrast to other cryptocurrencies, especially Ethereum, which experienced outflows totaling $7.4 million due to security concerns surrounding its network.
Cautious optimism
Looking at the broader crypto landscape, digital asset investment products enjoyed their fourth consecutive week of inflows, amassing a grand total of $66 million. This four-week run of inflows adds up to an impressive $179 million.
However, according to CoinShares analyst James Butterfill, the recent inflows, while promising, pale in comparison to the initial frenzy following BlackRock's announcement in June. This suggests that investors are approaching the crypto market with a degree of caution, despite recent positive developments.
As of now, Investors are closely watching Solana, curious to see if it will maintain its momentum and potentially serve as a testament to the growing interest in innovative blockchain technologies beyond established players like Bitcoin and Ethereum.