A recent survey has revealed a significant increase in adoption of the Solana blockchain, as institutional investors allocate more funds to the cryptocurrency. The survey, conducted by CoinShares, interviewed 64 investors managing a total of $600 billion in assets. According to James Butterfill, Head of Research at CoinShares, nearly 15% of respondents disclosed investments in Solana, a notable rise from previous surveys where none of the investors held any investment in the cryptocurrency. Solana also ranked third in terms of the most promising growth outlook. Butterfill noted that investors have been expanding their exposure to altcoins, with Solana seeing a significant increase in allocations. This growing interest in Solana coincides with recent technological advancements and the cryptocurrency’s growing presence in the market.
In contrast, XRP, the cryptocurrency associated with Ripple Labs Inc, saw a decline in interest among investors. None of the surveyed investors reported holding XRP, whereas previous surveys showed some investment in the cryptocurrency. However, a CoinShares report showed inflows of $1.3 million recorded for the week ending April 19.
Bitcoin remained the favored cryptocurrency for growth among investors, with 41% expressing bullish sentiments. Ethereum followed closely as the runner-up, with just over 30% of respondents optimistic about its growth prospects. The survey also revealed an overall increase in the percentage of cryptocurrency held in investors’ portfolios, reaching 3% compared to 1.3% in January. This marks the highest weighting since the survey’s inception in 2021.
While the report indicated a positive trend in crypto adoption among institutional players, there are still significant barriers to entry into the asset class. Regulation emerged as a primary concern, particularly among respondents without crypto exposure. Butterfill noted that regulatory constraints, along with corporate restrictions, have prevented many from entering the crypto market. However, volatility and custody concerns have diminished, leading to an increase in the percentage of investors viewing digital assets as “good value.” This shift is driven by increasing client demand and positive price momentum.
As of the latest data, Solana is trading at $142.9, representing a slight decline of 0.3% within the past 24 hours. The trading volume has also decreased by 24% to $3 billion, while the market capitalization stands at $63 billion.