Institutional investors have shifted their bets away from leading cryptocurrencies, including Bitcoin ($BTC) and Ethereum ($ETH), to three major altcoins: Cardano’s $ADA, Solana ($SOL), and $XRP in between. of a broader defeat of the cryptocurrency market.
As the total market capitalization of all crypto assets falls below the $1 trillion mark for the first time since early 2021, CoinShares Digital Asset Fund Flows report shows institutional investors largely turned away measure of the cryptocurrency space as they increased their bets on the three altcoins mentioned above. .
According to the report, digital asset investment product flows “remain choppy in anticipation of aggressive monetary policy” and steady daily outflows have led to weekly outflows totaling $102 million, with BTC investment products seeing $ 57 million in departures last week.
The report notes that what pushed BTC into a “crypto winter” can be “largely explained as a direct result of increasingly aggressive rhetoric from the US Federal Reserve.” Most of the outflows, the CoinShares report details, were made in the Americas, totaling $98 million. In Europe, outflows amounted to $2 million.
Despite these outflows, products shorting flagship cryptocurrency Bitcoin also saw outflows of $200,000, showing that institutional investors are presumably pulling out of the crypto market rather than betting against it. Total assets under management for short BTC products stand at around $55 million, compared to $27 billion for long BTC products.
Ethereum also saw outflows of $41 million, bringing its total outflows to date to $387 million. In contrast, its competitor ADA saw inflows of $200,000, as did XRP Ledger’s native token, XRP.
Solana apparently led the market last week for institutional staking, with $400,000 buy-ins, bringing his year-to-date flows to $108 million, well above Cardano’s $9.4 million and Cardano’s $6 million. XRP.
As CryptoGlobe reported, ADA has been outperforming Ethereum in recent weeks and is already up over 88% after hitting a recent low. Cardano’s performance is significant as it competes with Ethereum as a blockchain network running smart contracts and decentralized applications (dApps). As reported, more than 5 million native assets have now been minted on top of the Cardano blockchain, doubling the figure seen at the end of last year. More than 1000 projects are being built on the network,
It is worth noting that the price of Cardano has been rising ahead of the Vasil hard fork, which according to Cardano founder Charles Hoskinson is expected to bring a “massive performance improvement.” The crypto community has recently predicted that the price of Cardano’s native $ADA token will cross the $1 mark by the end of June, after the implementation of the hard fork.
The Vasil hard fork is a major upgrade that will involve four Cardano Improvement Proposals (CIPs).
The hard fork has already seen ADA outperform many other cryptocurrencies, even amid a broader cryptocurrency market downturn exacerbated by the collapse of the Terra ecosystem. That performance made ADA the sixth-largest crypto asset by market cap this week, overtaking XRP.
Meanwhile, Solana has significantly underperformed in a series of outages so far this year. XRP itself has been withheld and is being sued by the US Securities and Exchange Commission (SEC) against Ripple.
A panel of cryptocurrency industry experts has forecast the price of XRP to reach $2.55 by the end of the year and forecasts it to rise to $3.61 by the end of 2025 and $4.98 by the end of 2030.
The panel’s prediction is based on Ripple having a positive outcome in its case against the SEC. If Ripple loses, the panel sees the value of XRP drop to $0.68.
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