Solana Dominates Institutional Investments: Is Altcoin Season Here Again?

Last week, Solana (SOL) emerged as the leading cryptocurrency for institutional investments, attracting $118 million in inflows. In contrast, Bitcoin (BTC) and Ethereum (ETH) experienced outflows, indicating a shift toward altcoins. This article explores the implications of these trends and asks whether we are on the verge of an altcoin season.

Key Takeaways

Solana (SOL) led the market recovery with $118 million in institutional inflows, according to CoinShares.
XRP followed with $28.2 million, while Bitcoin (BTC) and Ethereum (ETH) witnessed outflows.
The recent debut of the U.S. Spot SOL ETF contributed to its strong performance.
The potential launch of XRP ETFs this week might further enhance institutional investments.
Some altcoins are rebounding, but selling pressure is evident among certain traders.

Solana altcoins

Are We Entering Altcoin Season?

The question arises: can Solana's recovery inspire a broader altcoin surge? Some altcoins, such as NEAR, have seen significant rebounds from October losses. However, CryptoQuant data indicates that some investors have been selling during this relief rally. Recently, the number of altcoin exchange inflows surged, suggesting increased selling activity on exchanges.

Solana altcoins

This upheaval is typical during past recoveries in the altcoin market. BTC dominance and USDT’s share at the current moment suggest that this rebound could continue if the overall market sentiment improves. Notably, as Bitcoin's price rose to $106k, its dominance decreased from 60% to 59%, indicating that investors are increasingly acquiring discounted altcoins.

For the sector to sustain momentum, the dominance of BTC and USDT must continue to decline. Such a shift would reflect heightened buying power as traders exchange their stablecoins for promising altcoin opportunities.

Solana altcoins

Furthermore, a potential resolution to the U.S. government shutdown could act as a catalyst for sustained upward momentum. As noted by ETF Store's Nate Geraci, reopening the government and revitalizing the ETF market could provide much-needed support for altcoins, particularly XRP.

Altcoin Season Index Reaches 100

From a performance standpoint, Cardano (ADA) led the charge among major cryptocurrencies, posting a 9% increase. XRP also saw an 8% rise, while Ethereum (ETH) climbed by 5%.

Solana altcoins

As per CoinShares, while SOL topped the list for institutional interest, ADA and XRP showed stronger performance on price charts. Despite the altcoin season index hitting a significant score of "100," many altcoins have yet to achieve a meaningful recovery.

Solana altcoins