Solana (SOL) has recovered 30% of its price since the Black Monday crash, hovering between $155 and $140. Recent reports have revealed that Solana-based investment products were among the biggest losers last week after seeing over $30 million in outflows.
The token continued its sideways trajectory despite negative net flows and a decline in memecoin trading activity during the week. As a result, SOL’s latest performance was praised by some crypto analysts who consider the cryptocurrency a protected bet.
Record outflows of funds from ETP Solana
CoinShares Latest Results report revealed that net flows of exchange-traded products (ETPs) were positive but “low” $30 million last week. The data showed that cryptocurrency investment products saw delicate inflows over the past 7 days, with flows mixed across providers.
According to the report, established ETP issuers continued to lose market share to providers of newer investment products. Weekly trading volume for crypto funds also fell to $7.6 billion, down almost 50% from the $19 billion recorded a week earlier.
Throughout the week, Bitcoin (BTC) saw the largest inflows among crypto assets, with a positive net flow of $42 million. Short-Bitcoin ETFs saw outflows of $1 million for the second consecutive week.
Ethereum-based products have seen just 10% of the flagship cryptocurrency’s inflows, posting $4.2 million since Aug. 12. Positive net flows of $104 million from up-to-date providers were dwarfed by outflows of $118 million from Grayscale Ethereum Trust (ETHE).
Despite this, Solana investment products saw the largest outflow in the cryptocurrency category, after Solana ETPs reported $39 million in negative weekly flows. 21Shares Solana ETP, at -$37 million, was the third largest outflow in the investment product category last week, behind ETHE and GBTC.
SOL continues its lateral trajectory
The CoinShare report highlighted that Solana ETP’s negative results came amid a “sharp decline in trading volume for memecoins, on which the company is heavily dependent.”
Data from CoinGecko revealed that Solana-based memecoins saw a 3.7% decline in the past 24 hours, registering a market capitalization of $3.59 billion. Market activity also showed a similar 3% decline since Sunday, dropping to a daily trading volume of $1.1 billion.
Despite this, the Solana ecosystem traded sideways over the weekend, oscillating between a market capitalization of $243 billion and $245 billion since August 15. SOL stock also traded between $140 and $155 over the weekend, having stayed in that range since August 12.
Altcoin Sherpa Cryptocurrency Analyst suggested that the token will see “more cuts and consolidations” in the coming weeks. However, he stated that the $125-$150 price range is “a great place to accumulate SOL.” The analyst also believes that the token “is still 1 that you can comfortably hold for some time.”
Likewise, Crypto Jelle excellent SOL’s latest results, stating that it “continues to be in the same sideways range while the rest of the market has hit lower lows,” the analyst believes that SOL will take off strongly “as soon as Bitcoin finds a bid,” with a up-to-date all-time high (ATH) “very much on the menu.”
At the time of writing, SOL shares were trading at $144, down 1.4% over the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
