Unlike BTC and ETH, “Investor Favorite” Solana Records Another Week of Influx

The cryptocurrency industry has had a rocky start to 2022 as much of it has remained in a downward spiral over the past few weeks. Its global market capitalization stood at $2.1 trillion at the time of writing, having lost more than 3% of its valuation in the past day. Much of this can be attributed to the BTC selloff which saw the coin slip below $42,000, however, the altcoin market suffered a similar fate.

This trend was reflected in the trading patterns of major digital assets Bitcoin and Ether, both of which saw record outflows over the past few weeks. According to the latest from Coinshares report, Bitcoin saw outflows of over $55 million in the week ending Jan. 17, while negative sentiment around Ether led to outflows totaling $30 million in the same period.

Solana against the tide

Breaking the bearish tide was Solana’s native token, as the “investor favorite” saw inflows totaling $5.4 million last week. The report adds that the digital asset has seen barely two individual weeks of releases since August 2021, underscoring the continued positive sentiment surrounding it.

It was around the same time that the network created headwinds as a potential competitor to Ethereum due to its significantly lower transaction costs and high speed. Since then, the smart contract platform has emerged as an alternative for many to launch DeFi and NFT projects, with Solana’s total DeFi TVL hitting a record high of over $12 billion in October last year.

The network has also committed to becoming carbon neutral in 2022, as environmental concerns remain one of the biggest barriers to mass acceptance of cryptocurrencies.

Widespread praise

This surge in popularity has also come with praise from financial experts across industries, including Bank of America which claimed last week that Solana would soon beat Ethereum to become the “Visa of the Digital Asset World” due to its relatively faster settlement capabilities.

It should be noted here, however, that Solana has frequently witnessed congestion issues as well as denial of service (DDoS) attacks. This has significantly played against the network’s prospects as a viable alternative to the ever-crowded Ethereum.

Additionally, other ETH killers also pose a significant threat to Solana’s estate. This was recently seen in Cardano’s significant uptrend over the past week. Meanwhile, its native asset ADA even overtook Solana to become the fifth largest cryptocurrency by market capitalization. At the end of last year, the network reached an important milestone by successfully exceeding 20 million transactions over 1500 days with no downtime.