Solana (SOL) is slowly but surely building its niche of importance within the cryptospace, having entered the top 10 of the most capitalized digital currencies of the spot market and having established itself as one of the most advanced chainblocks on the DeFi and NFT front.
The next step for Solana will necessarily be to target institutional investors and, even here, it seems that something is already starting to move in the right direction.
Inflows Seconds Only to BTC
The main news today is that, after 14 days of fairly consistent exits, the overall net flows of money entering the cryptomarket have started to point higher. CoinShares this week recorded the largest inflows since December 2021 and, of all crypto assets, Solana proved to be the best performing one.
Not only did SOL garner more buying interest than any other altcoin, including Ethereum , but it stood at just $ 10 million below Bitcoin inflows. In fact, Solana intercepted 37% of the total amount of money entering the cryptocurrency market, with a share of $ 87.1 million out of a total of $ 193 million. This development made Solana a leading investment product right after Bitcoin , with year-to-date inflows to BTC of $ 162 million and inflows to SOL of $ 95 million.
Activity Still Undertone among Holders
The renewed enthusiasm around SOL was most likely triggered by the recovery in prices, which since March 13 have developed a rally of around + 48%, measured up to today’s relative peak of 115.67 against the dollar. But the direct impact of cash inflows and the ongoing rally has not yet reverberated on holder activity.
During the month of February there was a significant drop in active users on Solana compared to the previous month, and in March things did not improve much. Since last week, however, the active address meter has gradually begun to take on an upward slope, stabilizing around an average of 200,000 units per day.
The Weight of the Energy Variable
The real concern of investors, in this altogether optimistic context, is that relating to the energy consumption that serves to keep the SOL blockchain alive. Solana is known to be one of the most energy efficient chains and even became carbon neutral last December.
However, the most recent energy use report released for March showed a 36% increase in consumption per transaction . Although, compared to Ethereum and Bitcoin, this figure is infinitesimal, it goes without saying that further increases in energy needs could in the long run become a major obstacle to a wider adoption of SOL, especially in a context of rising energy crisis like the one we are currently in. living right this year.