Crypto Outflows Continue but Solana, Cardano, and XRP Shine Bright

  • Digital assets see a 5th consecutive week of outflows, totalling nearly $0.5 billion over nine weeks.
  • Bitcoin investment products witness the largest drop, accounting for 85% of the outflows.
  • Solana, Cardano, and XRP products emerge as beacons of optimism, registering inflows.

Amidst a sea of crypto outflows, Solana, Cardano, and XRP defy the trend, offering investors a glimmer of hope in a volatile market.

Crypto Outflows Persist

Crypto investment products, including renowned names such as Grayscale, 21Shares, Bitwise, and ProShares, registered outflows of $53.5 million last week. This downturn continues a five-week streak, bringing the nine-week aggregate to an alarming $455 million. According to James Butterfill of CoinShares, the outflows decelerated slightly from the previous week’s $59.3 million but still signify a broader trend of decline. From a regional perspective, the U.S., Germany, Canada, and Sweden were the major contributors to this downturn.

Blockchain Equities Not Immune

Weekly crypto asset flows. TheSource:CoinShares.
Weekly crypto asset flows. TheSource:CoinShares.

The crypto downturn also affected blockchain equities, marking their sixth straight week of outflows, amounting to $9.6 million last week. However, in a silver lining, the trading volume surged by 42%, reaching over $1 billion, a significant leap from the prior week’s $754 million.

Major Coins Feel the Pressure

Bitcoin bore the brunt of the outflows, losing $45 million last week, a staggering 85% of the total outflows. Notably, short bitcoin funds, despite experiencing the highest single-week inflows since March just the week before, also faced outflows of $3.8 million. Ether, the second-largest cryptocurrency, was not immune either, with outflows of $4.8 million, even as James Butterfill highlighted its attractive investment potential. BNB and Polygon products too saw minor outflows, hinting at a broader market sentiment.

Solana, Cardano, and XRP: The Outliers

Against the backdrop of widespread crypto outflows, Solana, Cardano, and XRP emerged as outliers. These digital assets bucked the prevailing trend, with Solana seeing inflows of $0.7 million, Cardano with $0.4 million, and XRP at $0.1 million. These figures, albeit modest, suggest pockets of optimism and resilience amidst a larger market pullback.

Conclusion

The current crypto landscape paints a mixed picture. While outflows dominate, reflecting potential investor caution, certain digital assets like Solana, Cardano, and XRP demonstrate resilience, potentially hinting at their robust fundamentals or emerging use-cases. As the crypto market navigates this turbulent phase, these subtle shifts and trends can offer valuable insights for investors and market watchers alike.

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