A bullish investor waking up this morning to check their portfolio probably encountered scenes of extreme [financial] violence as jagged red lines dominated the charts and even Bitcoin crashed below $40,000.
However, the main question now is how the alts are faring. While some have praised their resilience[1], others might just see their once favorite coins bleeding out their own value.
In particular, let’s take a look at Solana[2] [SOL[3]]. Once touted as the “Ethereum Killer,” the crypto had fallen behind Ripple’s XRP and was the seventh biggest crypto by market cap at press time. SOL was changing hands[4] at $102.06, having fallen by 8.15% in the past day and losing 23.44% of its value in a week.
All heart but no SOL?
Coinshares’ weekly flows report[5] revealed a total of around $134 million in outflows, making it the second-largest this year. While Bitcoin made up most of the outflows, the report observed[6],
“Altcoins (ex-Ethereum) and multi-asset investment product flows were in stark contrast to Bitcoin and Ethereum with inflows totalling US$6m and US$5m respectively.”
Solana was one of those which defied expectations and saw inflows of around $3.7 million, indicating selling activity. So, that brings us to an essential question – are Solana investors panicking?
A look at trading volumes for the asset on Santiment showed that while the latest peak of transactions was shorter than those preceding it, transaction volumes actually picked up from around 10 April – even as the asset was falling.
One pertinent question here is – how much of this could be because of the NFT marketplace giant OpenSea[8] announcing that it would list Solana NFTs[9]
