Solana (SOL) is an ecosystem that has been booming in popularity lately. It’s been growing more and more popular among crypto investors, and this has a result in the fact that it’s threatening the more established crypto assets.
The digital asset management company CoinShares notes that Solana is seeing more inflows than Bitcoin and Ethereum during the week, which ended on September 13th.
During the past period, when the crypto market has been seeing a significant correction, Solana defied the trend.
The price of this digital asset surged a lot and recorded close to $50 million in inflows compared to Bitcoin’s $0.2 million and Ethereum’s $6.3 million.
“During last week’s price falls, Solana’s price was a stalwart, outperforming a basket of the top 10 digital assets by 34%, having risen 24% week-on-week. This was reflected with inflows, dwarfing any other digital asset, totaling almost US$50m.”
The official notes also reveal the following:
“A combination of price appreciation and inflows now brings Solana’s assets under management (AuM) to US$97m, the 5th largest of all investment products. Bitcoin remained flat for the week with a paltry US$0.2m of inflows, while Ethereum saw minor outflows totaling US$6.3m.”
CoinShares also said that during the seven-day period, crypto investors continued to diversify.
Altcoins such as Cardano (ADA), Polkadot (DOT), and XRP consequently recorded higher inflows than Bitcoin.
Reasons for which SOL’s price is going to the moon
Amidst a crashing crypto market, some altcoins are making waves in the crypto space. One of them is Solana (SOL). Its price performed extremely well amidst a massive correction that we’ve seen in the crypto market.
Lark Davis, who is an important crypto trader, noted that there are five reasons which are contributing to SOL’s surge.
In a YouTube video, he said that SOL is exploding because developers are actually building on its blockchain.
“Builders are actually showing up… You got to have stuff built on your blockchain. Otherwise, you’re a ghost town. Solana is definitely not a ghost town. We have loads of applications built on Solana [that] you can actually go out [and] use right now, today…” he said. Check out our previous article in order to learn more details.