Investment products tied to Solana have experienced a significant outflow of funds, totaling $3 million in the past week. This surge in outflows is a clear indication that investor confidence has been shaken following a network outage that lasted five hours earlier this month. The outage was caused by a bug that led to transactions entering an infinite loop, thereby affecting the functionality of the network.
While Solana-based products saw outflows, its rival Ethereum experienced inflows of $17 million during the same period. Other altcoins like Chainlink and XRP also attracted significant inflows of $1.8 million and $1.1 million, respectively. Investment products based on Cardano and Litecoin saw more modest inflows of $0.4 million and $1 million.
Bitcoin, on the other hand, continues to be a popular choice among investors, with inflows of $570 million last week and year-to-date inflows amounting to $5.6 billion. Despite recent price increases, there were minor inflows into short-bitcoin positions totaling $3.9 million. Overall, digital asset investment products saw weekly inflows of $598 million, marking the fourth consecutive week of such inflows.
The United States remains a key player in the cryptocurrency market, with the majority of inflows totaling $610 million. Grayscale, a major issuer in the US, witnessed additional outflows of $436 million last week. Brazil and Switzerland experienced minor inflows, while Canada, Sweden, and Germany saw outflows in varying amounts.
Despite the recent challenges faced by Solana-based products, the overall market for digital assets remains resilient. Total assets under management (AuM) reached a peak of $68.3 billion, the highest since December 2021. However, this is still below the all-time high of $87 billion recorded in November 2021. Blockchain equities had a less stellar week, with outflows amounting to $81 million, indicating a sense of caution among equity investors.