Solana Sees Record $39 Million Outflows Amidst Institutional Investor Retreat, CoinShares Reports

Solana is facing significant challenges. Last week, it experienced record outflows from institutional investors, according to CoinShares.

In their latest report, CoinShares noted that institutional interest in digital assets has dropped. Specifically, Solana (SOL), which competes with Ethereum (ETH), saw outflows of $39 million. This is the largest outflow on record for Solana.

Why the decline? The report indicates a sharp drop in trading volumes for memecoins, which Solana heavily relies on. As interest in these coins wanes, so does investment in Solana.

Overall, the trading volumes for investment products fell to $7.6 billion, nearly half of what they were the week before. This change comes as expectations shift regarding the Federal Reserve's next moves on interest rates.

In terms of regional performance, the Americas, which include the U.S., Canada, and Brazil, brought in $78.4 million in inflows. In contrast, Switzerland and Hong Kong experienced outflows totaling $44 million.

Bitcoin (BTC), the leading cryptocurrency by market cap, saw the most inflows at $42 million. Ethereum (ETH) and XRP also had inflows, bringing in $4.2 million and $0.2 million, respectively. Multi-asset investment products performed well too, attracting $21 million in inflows.

These trends highlight the current state of the crypto market and the shifting interests of institutional investors.