Solana
Ethereum Faces $60M Outflow Amid Solana ETF Hype, Network Growth
Ethereum net fund flow vs. Solana and other cryptocurrencies. Source: CoinShares
By comparison, Solana-specific investment funds saw $1.6 million in inflows in the week ending June 29, helped by buzz about the potential approval of their spot ETFs in the United States. Meanwhile, since the beginning of the year, these SOL funds have attracted $41 million so far.
This is despite the potential launch of Spot Ethereum ETFs in July following approval from the U.S. Securities and Exchange Commission (SEC) for its filings in May. However, the launch has been delayed beyond the originally scheduled date of July 2, Bloomberg ETF analyst Eric Balchunas said. had predicted earlier.
Solana Beats Ethereum on Key Network Metrics
The stark contrast between Solana and Ethereum’s net fund flows highlights their different performances as Layer 1 blockchains. For example, Solana is outperforming Ethereum so far in 2024 in terms of total value locked (TVL) growth.
For the uninitiated: A TVL is a key metric indicating the amount of assets staked or used in the blockchain’s decentralized finance (DeFi) ecosystem.
As of July 2, the Solana blockchain network’s TVL, calculated in its native token SOL, has increased by 121% since the beginning of the year. In comparison, the Ethereum blockchain network’s TVL has increased by 31.58% over the same period.