Solana Investor Confidence Plummets as 3 Million Dollars Flows Out

Crypto News– Investor sentiment surrounding Solana-based investment products had been on an upward trajectory throughout the year, thanks to significant performance enhancements and reliability upgrades.

Solana Investor Confidence Plummets as 3 Million Dollars Flows Out

However, confidence among investors took a severe blow following a network outage lasting five hours earlier this month. The outage was caused by a bug that triggered transactions to enter an infinite loop, severely affecting the network’s functionality. Among alternative cryptocurrencies, only investment products linked to Solana witnessed significant outflows, totaling $3 million over the past week. This figure nearly doubled compared to the previous week, during which Solana experienced $1.6 million in outflows.

In contrast, Ethereum, Solana’s competitor, saw substantial inflows amounting to $17 million.

During the same period, other altcoins like Chainlink and XRP attracted inflows of $1.8 million and $1.1 million, respectively. Investment products based on Cardano and Litecoin also recorded inflows of $0.4 million and $1 million, respectively.

According to the latest Digital Asset Fund Flows Weekly Report from CoinShares, Bitcoin witnessed inflows of $570 million last week, bringing its year-to-date inflows to $5.6 billion. However, recent price surges led to minor inflows into short Bitcoin positions, totaling $3.9 million.

Investment products focused on digital assets saw weekly inflows amounting to $598 million, marking the fourth consecutive week of such inflows. Consequently, year-to-date inflows surpassed $5.7 billion, accounting for 55% of the record inflows observed in 2021.

Earlier this week, total assets under management (AuM) reached a peak of $68.3 billion, the highest since December 2021, although still below the all-time high of $87 billion recorded in November 2021.

Meanwhile, blockchain equities experienced a lackluster week, witnessing outflows totaling $81 million, indicating a degree of caution among equity investors at present.