Institutional investors have recently moved their focus away from Ethereum (ETH) and toward competing Layer 1 blockchains, with capital inflows into altcoin investment products growing last week and outflows into Ether products for the third week in a row.
Investors piled up on $3.5 million worth of Avalanche (AVAX), Solana (SOL), Terra (LUNA), and Algorand (ALGO) funds last week (ending April 22).
That’s, according to CoinShares’ latest Digital Asset Fund Flows report, while capital outflows from Ether products reached $16.9 million.
It’s the third week in a row that Ethereum products have suffered withdrawals, bringing the total to $59.3 million, or around 35% of the $169 million in year-to-date outflows from the second-largest blockchain.
Despite recent skepticism, investors embraced digital gold last week, with Bitcoin (BTC) products attracting $2.6 million in inflows.
Inflows to Ethereum goods have only achieved $68.5 million in the last ten weeks, possibly signaling a pessimistic trend by institutions towards the major blockchain.
Image : Weekly flows showing $16.9m outflows from Ethereum. CoinShares.
Alternate layer 1 blockchains have recently grown in popularity, and decentralized application (dApp) usage on Solana has increased in the last seven days, according to DappRadar analytics.
Orca, a decentralized exchange, has 43 percent rise in usage in the last week, and Raydium, an automated market maker. Of course, has seen a 15.5 percent increase in usage, with volume on its app hitting over $1.5 billion.
While Avalanche’s dApp usage hasn’t increased in the last week, traders are optimistic about the platform’s future. Due to the blockchain’s investments in incentive programs and millions spent recruiting developers to the platform.
Inflows into Avalanche, Solana, Terra, and Algorand were $1.8 million, $800,000, $700,000, and $200,000, respectively. While Bitcoin experienced inflows of $2.6 million for the first time in two weeks. That’s, with month-to-date outflows remaining at $178 million, according to analysts.
Total withdrawals over the last three weeks have totaled $219 million, with that number falling to just 7.2 million last week. Which is, a far cry from the $134 million that left the market in the first week of April.
Despite the recent outflows, the analysts add that year-to-date flows are positive. That’s, with $389 million invested in crypto assets since the beginning of the year.
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