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Wednesday, March 22, 2023

Institutional Investments Stopped Favoring Ethereum After The Price Hit $17 Million

The policy of institutional investments have decided to give most of its attention to competing blockchains of layer-1 rather than to Ethereum. The capital inflows for the investment of altcoin products had increased in the previous week and the products of Ether gave outflows for three consecutive rows. 

Institutional Investments Are Favoring Small Altcoins From Last Week

The data from the report of Digital Asset Fund Flows shared by CoinShare stated that all the investors have incurred approximately $3.5 million of Solana, Avalanche, Algorand, and Terra funds in the previous week. However, the outflow capital of the products of Ether aggregate to an amount of $16.9 million. 

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The products of Ethereum are observing outflows for straight three weeks currently which made the aggregate amount to be $59.3 million. This is equivalent to nearly 35% of the outflows to date of $169 million from the blockchain which is marked as the second largest one. The majority of the investors have also supported digital gold assets in the previous week despite their hesitancy in the past. 

The gold assets were favored with products of bitcoin which helped to incur $2.6 million worth of inflows. The last few weeks were marked with an inflow of just $68.5 million for ETH which portrayed a bearish nature. The DappRadar metrics state that the blockchains of alternate layer-1  have gained a lot of popularity in recent times. 

Moreover, the use of DeFi on Solana has also seen a hike. There has been an increase in the use of decentralized exchange by 43% along with the AMM Raydium by 15.5% where the app volume reached nearly $1.5 billion. The inflows of SOL, ALGO, LUNA, and AVAX were $800,000, $200,000, $700,000, and $1.8 million respectively. On the other hand, bitcoin experienced inflows equal to $2.6 million after a long time. Thus, institutional investments get out of ETH and put more emphasis on Layer-1 altcoins.

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