Solana, XRP, and Cardano: The New Institutional Favorites?

The cryptocurrency market is starting the week on a bullish note, as it records a remarkable 2.5% increase in overall value. Following a period of bearish behavior, cryptocurrencies now exhibit signs of stability, suggesting a potentially bullish end to the month for both Bitcoin and alternative coins.

In a report by CoinShares, the year 2023 has seen substantial investments pouring into Solana, XRP, and Cardano (ADA), which has put Ethereum (ETH) in the shadows.

The Rise of Solana, XRP, and Cardano in 2023

These alternative coins have risen as prominent choices, marking a significant shift in the cryptocurrency landscape. Meanwhile, institutional investors have taken center stage in the crypto scene for 2023, with Solana (SOL) standing out as the star performer, attracting an impressive $3.7 million in weekly investments. Despite recently experiencing a 9% dip in its value, Solana’s allure to institutional investors remains undeniable.

XRP is demonstrating its resilience by maintaining an extraordinary 25-week streak of positive inflows, a remarkable feat considering the legal challenges it has faced. Cardano (ADA) is also gaining attention with an influx of $6 million from institutional investors. Cumulatively, these three cryptocurrencies have amassed $59 million, $15 million, and $6 million in investments year-to-date, solidifying their status as the preferred choices among institutional investors.

Read More: Next AltSeason Spotted- Altcoins to Consider in October 2023

So, What is Pumping this Surge?

Undoubtedly, this trend reflects the growing confidence of institutional investors in the potential of these digital assets, even in the face of market fluctuations. While the recent surge in institutional interest in Solana has yet to translate into an immediate rise in market prices, it emphasizes the delicate nature of cryptocurrency investments. Various factors influence the market, and short-term price volatility may not necessarily reflect the long-term investment potential.

Additionally, the data reveals a noticeable regional divide in institutional investment patterns. While the US sees steady but modest inflows, Europe enjoyed net inflows of $7 million last week, with Sweden being the only exception, experiencing outflows. This divide underscores the varying levels of institutional adoption across different regions.

XRP’s Win Streak Continues!

The trend now highlights regional disparities in institutional investment trends. While the United States continues to experience modest inflows, Europe saw net inflows of $7 million last week, with Sweden being the only outlier, witnessing outflows. The extraordinary 25-week streak of positive institutional inflows into XRP is particularly noteworthy.

Also Read: XRP Ranks as Third Most Popular Altcoin in 2023, Shows Research

XRP’s recent legal win favors the coin, though not much change is noticed in price. However, it is one of the toughest competitors of Bitcoin at the present moment. Conversely, Bitcoin continues to attract investments, with $43 million flowing in. However, some are betting against it, putting $1.2 million into “short” positions, banking on a price drop. 

Currently, Bitcoin stands at $27,600, showing a slight two percent dip.