Despite suffering a network outage due to a denial-of-service attack that took the Solana network offline for 17 hours on Sept. 14, Solana funds continued to see inflows of US$4.8 million last week, according to digital asset manager CoinShares.
Fast facts
- “This suggests investors were happy to shrug-off the attack, seeing it as teething problems rather than something more inherent with the network,” wrote CoinShares Investment Strategist James Butterfill. “Inflows were also likely helped by speed at which miners adopted the upgraded protocol.”
- The price of Solana, a proof-of-stake blockchain and Ethereum challenger, had been a star performer and stalwart among cryptocurrencies during the market crash earlier this month. Solana started the year at US$1.52 and surged over 13,000% to reach an all-time high of US$213.47 on Sept. 9. Solana is trading at US$144 as of publishing time, according to CoinGecko data
- Digital asset investment products saw a total inflow of US$42 million last week — the fifth consecutive week of inflows, CoinShares reported. “Inflows were seen across all digital assets and signals what we believe to be continued improving sentiment amongst investors,” Butterfill wrote. Total digital assets under management (AUM) across all digital asset fund providers last week was US$59 billion.
- Bitcoin, which has borne the brunt of negative investor sentiment with institutional investment inflows in only three of the last 16 weeks, continued to see inflows of US$15 million, Butterfill wrote. Bitcoin’s market share of AUM has dropped from 81% in January to 67% today as investors continue to diversify into altcoins.