{"id":2507,"date":"2023-10-04T01:37:39","date_gmt":"2023-10-04T01:37:39","guid":{"rendered":"https:\/\/solanacrypto.news\/2023\/10\/04\/institutional-adoption-and-record-value-locked\/"},"modified":"2023-10-04T01:37:39","modified_gmt":"2023-10-04T01:37:39","slug":"institutional-adoption-and-record-value-locked","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2023\/10\/04\/institutional-adoption-and-record-value-locked\/","title":{"rendered":"Institutional Adoption and Record Value Locked"},"content":{"rendered":"
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In the landscape of cryptocurrency, 2023 has emerged as the year of Solana. This prominent altcoin has managed to remain a favored choice for institutions, even as activity in the rest of the crypto sector remained relatively stagnant. CoinShares\u2019 recent report<\/a> on crypto funds highlighted this attraction, revealing Solana\u2019s impressive record of 27 weeks of continuous inflows. This uninterrupted rally comes amidst a background where the broader altcoin arena seemed mostly dormant.<\/p>\n

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Solana continues to shine, with inflows of US$5m, marking its 27th week of inflows and just 4 weeks of outflows this year.<\/p>\n<\/blockquote>\n

The steady institutional attraction to Solana<\/a> has manifested in $5 million worth of acquisitions in the last week alone. With this impressive inflow metric, Solana has undeniably positioned itself as the altcoin to watch this year. James Butterfill, the head of research for CoinShares, attributes this growing institutional attention to Solana\u2019s strategic collaborations, notably with the payments juggernaut Visa. While Solana might not have the vast user base or developer community Ethereum boasts, it does offer advantages such as ultra-fast and affordable transactions. These features have made it especially captivating for investors.<\/p>\n

Moreover, Solana\u2019s momentum doesn\u2019t just stop at institutional inflows. Data from DefiLlama indicates that Solana\u2019s total value locked (TVL) surged to a 2023 high of $338.82 million. This impressive figure saw a jump of approximately 4.15% in a day, moving up from Sunday\u2019s $324.64 million. Spearheading this TVL spike are notable Solana-backed projects, including the likes of Drift, marginfi, and Solend.<\/p>\n

SOL: A Remarkable Performance This Year<\/h2>\n

Further illuminating the altcoin\u2019s success is its native token, SOL. This cryptocurrency enjoyed a significant price appreciatio<\/a>n, with an increase of 29% over the past week. At the time of reporting, SOL\u2019s price stood at $24.42, marking a commendable 65% surge from its lowest 2023 value.<\/p>\n

Bitcoin, the cryptocurrency titan<\/a>, has also seen a notable shift in trajectory, with a reported inflow of $20.4 million in recent times. This uptick in interest might be associated with ongoing budgetary debates in Washington D.C. Additionally, James Butterfill suggests a potential correlation between the timing of these inflows and the rise of the 10-year government bond.<\/p>\n

Yet, the crypto space<\/a> is not without its challenges. Average transaction volumes hover around a relatively low $3 billion per day, a significant decline from the previous year\u2019s $11 billion. Butterfill points out that such levels are reminiscent of 2020.<\/p>\n

Differing regional trends add another layer of complexity. While the U.S. reported crypto outflows amounting to $19 million, Canada showed positive signs with $17 million in buying activities. Europe, on the other hand, registered inflows worth $23 million.<\/p>\n

Contrastingly, Ethereum\u2019s performance<\/a> has been less stellar. Labeled as the \u201cleast-loved altcoin\u201d this year, it has witnessed consistent outflows, amounting to a total of $114 million over the course of the year.<\/p>\n

Solana\u2019s trajectory in 2023 is marked by robust institutional adoption and an impressive TVL figure. As the crypto space<\/a> continues to evolve, it remains to be seen how these dynamics will shape the market\u2019s future direction. However, given the quality of its technology and the flurry of innovations and partnerships<\/a> that are happening in the Solana ecosystem, it\u2019s likely that its future prospects are very promising.<\/p>\n

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1\/ OpenBlock Labs is partnering with Solana Foundation to launch Solana Retroactive Public Goods Funding (RetroPGF) Round 1! You can nominate projects and find out more here: https:\/\/t.co\/dZTaHQNoPC<\/a> pic.twitter.com\/969Rm4d0z9<\/a><\/p>\n

\u2014 OpenBlock (@openblocklabs) October 2, 2023<\/a><\/p>\n<\/blockquote>\n

\u00a0<\/p>\n

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