According to a recent survey, Solana has experienced a significant increase in adoption. Among investors, Bitcoin remains the most popular cryptocurrency. However, the CoinShares report reveals that there is a growing interest in the Solana blockchain, with institutional investors allocating more funds to it. James Butterfill, Head of Research at CoinShares, states that the survey was conducted among 64 investors managing a collective $600 billion in assets.
The survey indicates that nearly 15% of the investors have invested in SOL, which is a notable increase compared to previous surveys. In January, none of the respondents held any investment in Solana. The report also highlights that Solana ranks third in terms of the most promising growth outlook. Butterfill notes that investors have been diversifying their portfolios by increasing their allocation to altcoins, with Solana witnessing a significant rise in allocations.
The growing interest in Solana is attributed to recent technological advancements and the altcoin’s increasing presence in the market. As previously reported by Crypto News Flash, Subsquid, a Web3 data lake and query engine, is set to partner with Solana-powered Neon EVM.
On the other hand, XRP, the cryptocurrency associated with Ripple Labs Inc, has experienced a decline in interest. None of the surveyed investors reported holding XRP, which is a significant contrast to previous surveys. However, a CoinShares report shows that there were inflows of $1.3 million for XRP in the week ending April 19.
Despite these trends, Bitcoin remains the preferred cryptocurrency for investors, with 41% expressing bullish sentiments. Ethereum closely follows as the second most favored cryptocurrency, with just over 30% of respondents optimistic about its growth prospects.
The survey also reveals an overall increase in the percentage of cryptocurrency held in investors’ portfolios, reaching 3% compared to 1.3% in January. Butterfill notes that this is the highest weighting recorded since the survey began in 2021. The growth in cryptocurrency holdings can be partly attributed to institutional investors gaining exposure to Bitcoin through the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the US. However, stocks remain the most heavily weighted asset class, accounting for over 55%.
Although the report shows a positive trend towards crypto adoption among institutional players, there are still significant barriers to entry into the asset class. Regulation is a primary concern, especially for respondents without crypto exposure. Butterfill mentions that regulatory constraints and corporate restrictions have deterred many from entering the crypto market. However, he suggests that volatility and custody concerns are decreasing. The percentage of investors who view digital assets as “good value” has increased from under 15% to over 20% between January and April, driven by rising client demand and positive price momentum.
As of the latest Marketcap data, SOL 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.