- Ethereum killers Cardano and Solana have been outperforming Ether (ETH)
- Ethereum also saw outflows of $41 million last week
- Cardano and Solana saw inflows of $400,000 and $200,000, respectively
Institutional investors are gradually moving their money from leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) after the market crash which caused BTC to go as low as $20,000 while ETH fell to $1,000. These investors have now turned their attention to altcoins Cardano (ADA), Solana (SOL), and XRP.
According to data from CoinMarketCap (CMC), the market capitalization of the crypto space went below the $1 trillion level for the first time since early 2021 and as of 11:00 p.m., ET stood at $933 million. Following this market crash, CoinShares, a digital asset management firm that provides financial products and services for professional investors, released its Digital Asset Fund Flows report claiming that institutional investors are gradually moving away from the crypto space while focusing on three altcoins: ADA, SOL, and XRP.
“Digital asset investment products flows remain choppy in anticipation of hawkish monetary policy, with steady daily outflows last week totaling US$102m,” said the report, adding that BTC saw outflows totaling $57 million last week, bringing month-to-date outflows to $91 million.
“What has pushed Bitcoin into a ‘crypto winter’ over the last 6 months can by and large be explained as a direct result of an increasingly hawkish rhetoric from the US Federal Reserve,” the report added. “Regionally, the majority of outflows were focussed on the Americas, totaling US$98m with Europe seeing just US$2m outflows.”
Interestingly, Ethereum also saw outflows of $41 million, bringing the total outflow from year to date to $387 million while Ethereum-killers Cardano and Solana saw inflows of $400,000 and $200,000, respectively. The year-to-date inflow for SOL now stands at $108 million while inflows for ADA stand at $9.4 million.
Ethereum-killers are blockchain networks that aim to dethrone Ethereum by providing more scalable and congestion-free alternatives with negligible gas fees.
Meanwhile, the native token of the XRP Ledger, XRP, saw inflows of $200,000 for this week, bringing the year-to-date inflow for XRP to $6 million.