The crypto market has been taking a downturn and institutional investors are now phasing their Ethereum investments out. Multiple outflows had caused the digital asset to plummet in total AuM (assets under management). This trend is continuing this week. Instead of shifting to Bitcoin’s larger rival, institutional investors now prefer to move to networks that compete with Ethereum.
Algorand gets big money from Ethereum
Algorand, one of Ethereum’s leading competitors, has made waves in decentralized finance (DeFi). Because of this, institutional investors are choosing to use the smart contract platform to make their investment. This has resulted in institutional investors moving away from Ethereum to Algorand.
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The data from the last week show that Ethereum has continued to lose favor with big-money, but Algorand is right behind it in order to take all the inflows. The DeFi protocol saw an increase in inflows of $20 million. This is an all-time high in digital assets and a sign of increasing interest in DeFi protocols other than Ethereum.
Outflows are continuing to impact the world’s largest smart contract platform. The asset saw $11.6million leave the platform last week. Its year-to date outflows have reached a remarkable $250 million. Ethereum’s institutional investors have had the most trouble with it than any other altcoins.
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Other altcoins that are DeFi protocols also saw inflows this year. Tron, Solana, and Tron both managed $1.8million and $0.4million in inflows for the year respectively. This shows that large money continues to be bullish on altcoins.
This Week is Not Too Bad
The market’s other currencies were not as bad last week. Inflows to bitcoin, for example, were $69 Million. While it is not as large as the previous week’s inflows, it shows how institutional investors view the market through this downtrend. Last week’s inflows brought bitcoin’s year-to-date inflows to $369 million, the opposite of Ethereum, which has been dominated by outflows.
One thing to note though is that BTC’s AuM has declined to the lowest point since July 2021. It isn’t due to institutional investors not investing in bitcoin. This is rather due to the recent decline in value of digital assets.
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Others vehicles saw inflows as well. Institutional investors have long favored multi-asset, and the popularity shines even during a bear market. Inflows reached $4.8million last week. Inflows of bitcoin short-term also reached $1.8million.
The European market has begun to see the light at the end. After more than a month of consistent outflows, Europe’s inflows reached $15.5 million. North America remains the leader with total inflows of $72million.
Featured image taken from CryptoSlate. Chart by TradingView.com
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