It seems that institutional investors have shifted their interest from Ethereum to Layer-1 blockchains. Altcoins have been seeing great capital inflows over the last week while Ether (ETH) products have posted outflows over the same time period. This has been the case for the last three consecutive weeks.
According to data from CoinShares’ latest Digital Asset Fund Flows report, investors loaded up on millions worth of altcoins over the last week. These coins include Avalanche (AVAX), Solana (SOL), Terra (LUNA) and Algorand (ALGO).
AVAX reported an inflow of $1.8 million, SOL reported $800,000, LUNA had an inflow of $700,000 and ALGO reported a $200,000 inflow.
While these coins had a fantastic week, ETH reported outflows that totaled around $16.9 million. ETH has seen these outflows for three straight weeks now and the total is now estimated to be $59.3 million.
Over the past 10 weeks, ETH’s inflow only totaled around 68.5 million. This could signal a bearish trend by institutions towards ETH.
Alternate Layer-1 blockchains have been growing in popularity. According to DappRadar, decentralized application (DApp) usage has increased on Solana. Usage on (DEX) Orca has also grown by 43% while (AMM) Raydium saw an increase of 15.5%.
Over the last three weeks the outflow has only been around $219 million before cooling down to only $7.2 million over the last week. This is a big difference when comparing the numbers to the $134 million that left the market during the first week of April.
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Source: Cryptocurrency - investing.com
