Institutional investors are becoming more interested in Solana, a blockchain network that competes with Ethereum.
Despite the massive drop that has hit the whole crypto industry in recent days, institutional investors remain bullish on the market.
Product funds dedicated to the two largest crypto currencies by market cap, Bitcoin and Ethereum, continue to rise, according to CoinShares, with interest in Solana also increasing significantly.
Bitcoin and Ethereum saw 268 million and 16.6 million inflows, respectively, in the latest week of October while Solana has seen 43 million inflows in the last month.
Solana network’s native token, SOL, has seen a price increase of more than 16,000 percent year to date. Solana bills itself as the world’s fastest blockchain, with an average transaction cost of $0.00025 according to its website.
Institutions are diverting money away from multi-asset investment packages as they target certain altcoins, according to CoinShares.
The Solana token rally, SOL, can be linked to the network’s rapid growth as well as investors’ and backers’ belief in the network’s technology potential.
Solana uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus techniques to improve performance and scalability. As a result, the network claims to be able to process 50,000 transactions per second (TPS), making it the fastest blockchain in the world.
There are approximately 350 initiatives in Solana’s ecosystem including decentralized finance (DeFi) apps that provide free financial services without the need for an intermediary, non-fungible token (NFT) activities, gaming apps, and more.