Crypto Inflows Surge: Solana Shines, Ether Declines

According to the latest Digital Asset Fund Flows Weekly Report from European digital asset management company CoinShares, cryptocurrency assets experienced inflows for the first time in six weeks between September 22 and 28.

Solana’s SOL ranked second with $5 million in inflows as the only other asset. According to CoinShares, this is its 27th week of inflows and only four weeks of outflows for 2023, making it “the most beloved altcoin this year.”

On the other hand, Ether experienced outflows totaling $1.5 million. This is the seventh consecutive week of outflows, and according to CoinShares, this solidifies its position as “the least popular alternative currency.”

Flows for other altcoins, including XRP, which saw more inflows than Solana during the previous week, were negative and minimal. CoinShares analysts attributed the dearth of altcoin movement to a combination of factors:

“We believe the inflows are a reaction to a combination of positive price momentum, fears over US government debt prices and the recent quagmire over government funding.”

The quagmire that CoinShares refers to is the ongoing negotiations over U.S. government funding. The previous week’s news cycle was dominated by predictions that the United States government would close down on October 2.

However, a last-minute push by Senate leaders resulted in the passage of a stop-gap measure that guarantees funding through November 17.

It remains to be seen whether Congress and the president can reach an agreement to finance the government beyond the expiration of the current measure.

Geographically, Germany, Canada, and Switzerland led the way for the week with respective inflows of $17.7 million, $17.2 million, and $7.4 million.

Australia and France held the line, metaphorically speaking, with Australia contributing $100,000 and France contributing nothing.

However, the United States recorded $18.5 million in outflows, followed by Sweden ($1.8 million) and Brazil ($900,000).