Solana claimed a trend of daily positive capital net flow over the past year that has exceeded the price performance of Bitcoin and Ethereum.
Solana, in particular, has seen consistent capital inflows since September 2023, reaching a high of $776 million in daily inflows this year, according to the blockchain analytics firm Glassnode.
Solana records capital inflow despite lack of ETFs
This growing liquidity has contributed to Solana’s impressive price rise, with the crypto asset rising over 2,143% from its November 2022 low of $9.64, a price point it regained due to contagion from the FTX implosion.
Despite the absence of Solana Exchange Traded Funds (ETFs), SOL has managed to get dressed significant investment. In contrast, Bitcoin and Ethereum have benefited from the introduction of spot ETFs, which have led to greater institutional investment and contributed to their market growth.
For example, the approval of spot Bitcoin ETFs earlier this year led to impressive capital inflows, with investors pouring $36 billion into these funds and amassing assets of about $110 billion.
However, the US Securities and Exchange Commission (SEC) has done so was hesitant to approve spot Solana ETF applications. The crypto basic confirmed that the SEC plans to reject applications from several asset managers seeking to bring such products to market.
This stance may be due to regulatory uncertainty and investor protection concerns. Despite regulatory hurdles, Solana has demonstrated impressive growth and resilience.
Since its cycle low in November 2022, the cryptocurrency has outperformed…
