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Investors are Ditching Ethereum for Solana: Here’s Why

Investors are Ditching Ethereum for Solana: Here’s Why

CoineditionCoinedition2024/09/24 16:00
By:Coin Edition
  • Solana leads crypto inflows over the last three months, showing steady growth and gaining investor attention among top networks.
  • Ethereum faces the largest capital outflows despite its strong market position, with newer networks attracting more investments.
  • Emerging blockchains like Sui and OP Mainnet are seeing increased inflows, while Layer-2 networks like Arbitrum and zkSync face declines.

Over the past three months, net capital flows in the crypto market have shown notable trends, as posted by MartyParty on social media. The data reveals that Solana recorded the highest inflows, followed by OP Mainnet, Sui, Base, Avalanche C-Chain, Polygon PoS, Injective, and StarkNet.

Meanwhile, Ethereum experienced the largest outflows, followed by Linea, Arbitrum, Blast, zkSync Era, Bitcoin, and BNB Chain. These shifting flows reflect a changing market where newer blockchain networks are gaining investor attention, even as established networks like Ethereum face challenges.

Solana and Emerging Networks Gain Ground

Solana, with the highest inflows among the top 15 networks, has shown steady growth. The price of Solana today stands at $147.05 , with a market cap of $68.92 billion and a trading volume of $2.34 billion. 

Other networks like OP Mainnet and Sui have also experienced positive flows. Sui, for  instance, is priced at $1.63 , with a 24-hour trading volume of $761 million and a market cap of $4.35 billion. These inflows into newer networks demonstrate a shift in capital allocation towards emerging blockchain technologies.

Ethereum and Layer-2 Networks Face Outflows

Ethereum has seen the largest capital outflows over the last quarter. Even with Ethereum’s strong market position, with a price of $2,648.48 and a market cap of $318.77 billion, it lost ground to newer networks. 

Layer-2 solutions like Arbitrum and zkSync Era also recorded high outflows. Arbitrum’s price is currently $0.60 , and zkSync is priced at $0.12 , both reflecting the broader trend of outflows from Layer-2 networks.

Several smaller networks like Base, Blast, and Injective have experienced varying trends. Take Base, for example. It recorded slight outflows, priced at $0.000002 , with a trading volume of just over $20,000. Injective, on the other hand, saw positive inflows and is priced at $22.06 , showing resilience in a volatile market.

Blast valued at $0.0098 , experienced declines despite its growing market presence. Also, the zkSync network, along with Bitcoin and BNB Chain, faced outflows, indicating a possible shift in investor sentiment away from traditional giants towards emerging blockchains.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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