Institutional Investors Turn To Competitors As Ethereum Tumbles
June 02 2022 - 1:00PM
NEWSBTC
As the crypto market has taken a turn for the worse, institutional
investors are phasing out their investments in Ethereum. The
digital asset had been the victim of multiple outflows that had
tanked its total AuM (Assets under management) and this trend has
continued this week. Instead of moving to a larger competitor,
Bitcoin, institutional investors are now moving to networks that
are in direct competition with Ethereum. Big Money Leaves Ethereum
To Algorand Algorand is one of the leading competitors of Ethereum
which has been making waves in the decentralized finance (DeFi)
space. Due to this, more institutional investors have been choosing
to pitch their tent with the smart contract platform. What this has
led to is the movement of institutional investors out of Ethereum
and into competitors like Algorand. Related Reading | Cardano
TVL Jumps 30% In 24 Hours As It Recovers To $155 Million Data from
last week shows that while Ethereum continues to fall out of favor
with big money, Algorand has been right behind it to soak up all of
the inflows. This saw inflows into the DeFi protocol reach $20
million. It is a new high for the digital asset and is evidence of
growing interest in other DeFi protocols besides Ethereum. As for
the leading smart contract platform, outflows continue to rock the
asset. It saw a total of $11.6 million leaving last week. This has
brought its year-to-date outflows to a staggering $250 million.
Compared to other altcoins, Ethereum has had the worse luck among
institutional investors. ETH trading below $2,000 | Source: ETHUSD
on TradingView.com These other altcoins, which happen to be DeFi
protocols, also recorded inflows for the year. Solana and Tron
managed $1.8 million and $0.4 million in inflows respectively,
indicating that big money remains bullish on these altcoins. A Not
Too Bad Week For other coins in the market, last week proved to be
not terrible. For example, inflows into bitcoin were $69 million.
It may not be as high as other weeks of inflows have been but it
speaks volumes about how institutional investors are viewing the
market even through the present 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. This is not a direct result of institutional
investors not putting money in bitcoin. Rather, it is due to the
decline in the value of the digital asset over the last couple of
weeks. Related Reading | Bitcoin Dominates Derivatives Market
To End May On A High Note Other vehicles also enjoyed inflows into
them. Multi-asset has been a long-time favorite of institutional
investors and this shines through even in a bear market as inflows
totaled $4.8 million last week. Short bitcoin inflows also reached
$1.8 million. Across the pond, the European market is
starting to see a light at the end of the tunnel. After more than a
month of consistent outflows, Europe’s inflows reached $15.5
million. However, North America continues to dominate with total
inflows coming out to $72 million. Featured image from CryptoSlate,
chart from TradingView.com Follow Best Owie on Twitter for market
insights, updates, and the occasional funny tweet…
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