According to analysis from CoinShares, investors have favoured smaller layer-one altcoins of late with institutional capital outflows from Ethereum hitting US$17 million:
According to a weekly report by asset management firm CoinShares, institutional investor funds flow to digital assets such as crypto assets (cryptocurrency) investment trusts have exceeded outflows for the second straight week. pic.twitter.com/kgT8iCuN9M
— Snow (@Snow76231837) April 20, 2022
Smart Money Favours Layer-One Projects
Institutional investors have been shifting their attention away from Ethereum to competing layer-one blockchain projects, with capital inflows for altcoins increasing while ETH products posted outflows for the third consecutive week. Data from CoinShares’ Digital Asset Fund report shows that investors bought up US$3.5 million worth of Avalanche, Solana, Terra, and Algorand.
The data shows total outflows of ETH now amount to US$59.3 million, around 35 percent of the year-to-date outflows of US$169 million.
Decentralised application usage on Solana in the past week has increased, according to data from DappRadar. While the metrics from Avalanche’s DApp usage have not increased over the week, the project’s investment in incentive programs and millions spent bringing developers to the platform signal a bullish future.
Significant Shift in Past Three Weeks
Inflows into Avalanche, Solana, Terra and Algorand were US$1.8 million, US$800,000, US$700,000, and US$200,000 respectively, with Bitcoin recording inflows worth US$2.6 million for the first time in two weeks. Over the past three weeks, total outflows were US$219 million, a significant shift from the US$134 million that left the market in the first week of April.
In March, another report released by CoinShares showed that institutional crypto funds had seen their biggest capital inflows since December 2021, with over US$193 million coming in during the week ending March 25.
- Crypto News
- Algorand (ALGO)
- Avalanche (AVAX)
- Ethereum (ETH)
- Solana (SOL)
- Terra (LUNA)
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
