Solana (SOL) is currently one of the best-performing cryptos. The popular altcoin has surged by over 260% since the beginning of this year. SOL has even outperformed Bitcoin (BTC), which has risen by about 107% in the same time frame.
According to CoinShare’s latest fund flow report, Solana (SOL) witnessed the highest inflow of funds among the altcoins. The project saw inflows of $23.9 million over the previous week. Ethereum (ETH), on the other hand, saw outflows of $6 million in the same time frame. Furthermore, other alts like XRP and Litecoin (LTC) saw minor inflows of $0.2 million and $0.5 million respectively.
As per CoinShare’s report, BTC was responsible for 90% of all fund inflows, with $296.3 million flowing into the project. Nonetheless, $15.4 million went into short Bitcoin (BTC) products.
The inflow of funds into SOL is visible in the token’s performance over the previous week. SOL is up by over 16% in the weekly charts and 11.7% in the last 24 hours.
Why are investors bullish on Solana (SOL)?
SOL’s performance is especially commendable, given that it was one of the worst-affected projects after the collapse of FTX. FTX founder Sam Bankman-Fried (SBF) was heavily bullish on SOL and bought a lot of tokens. However, when FTX collapsed, it led to a plunge in SOL’s price. Moreover, several projects exited the Solana (SOL) ecosystem, jumping ship to rival chains. However, the asset has shown incredible performance since then.
The continuous inflow of funds into SOL shows investors are bullish on the project. The inflows also show that investors aren’t bothered by a possible liquidation from FTX. A court has permitted the now-defunct exchange to liquidate its SOL holdings. The sale could have a detrimental effect on the asset’s price. However, investors seem to be ready to take on the incoming dump.