Solana loses 10% in 24 hours, but ‘beats’ Bitcoin and Ethereum in THIS key area

• The funds attracted inflows despite bearish SOL price action.
• The prospect of improving network health could have driven investors towards SOL.

Solana linked digital asset funds [SOL] There was healthy demand last week as investor appetite for the fifth-largest cryptocurrency took a healthy turn.

Solana sees a change in sentiment

According to the latest report from crypto asset management company CoinShares, Solana-based crypto products attracted more than $4 million in inflows last week.

This was a sharp turnaround from the $300,000 in net outflows recorded the previous week.

The recent surge in inflows came even as blue-chip assets like Bitcoin [BTC] and Ethereum [ETH] There were large capital outflows, totaling $423 million and $38 million, respectively.

Interestingly, demand for SOL-linked funds increased despite bearish price action, which saw the crypto fall 16% over the week, AMBCrypto noted using CoinMarketCap data. At press time, in just 24 hours, the price of SOL had dropped more than 10% on the charts.

In fact, the price decline resulted in a slight drop in total assets under management (AUM) from last week, from $1.15 billion to $1.14 billion.

Was this the reason?

While it is difficult to identify the bullish catalyst driving investors towards Solana products, the possibility of reduced network congestion could be a credible cause.

Solana developers have been shipping release after release to alleviate transaction failures and network congestion, issues that have contributed significantly to the FUD around the coin.

The last one to come out was v1.18.12 which was currently being validated in the test environment.

The Solana community hoped that these improvements would finally solve the current problems with the blockchain, which has been pushed to the limit due to an explosion in currency meme trading.

Read Solana [SOL] Price prediction 2024-25

The last blow

With Bitcoin falling below $60,000, the bearish trend has persisted on SOL charts, with the altcoin falling 10% in 24 hours.

The latest drop appeared to be part of the broader market bloodbath, driven by the lackluster performance of newly listed spot crypto ETFs in Hong Kong.

This is an automatic translation of our English version.