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Solana and XRP Escape Massive Outflows in the Crypto Market

Adekunle Joshua

Key Insights

  • The crypto market has lost a lot of liquidity over the last ten weeks, with Bitcoin and the rest of the market losing almost $500 million.
  • There has been a net outflow of $9 million from the crypto market in the past week, bringing the total to almost $464 million over the previous 10 weeks.
  • Europe has shown more resistance to the crypto market's outflows than any other region in the world, with inflows of about $16 million over the last week.
  • Bitcoin and Ethereum have suffered massive withdrawals in recent weeks, while Solana and XRP have seen inflows.
  • XRP and Solana's prices have been tracking one another since mid-July when Ripple beat the SEC in court over the issue of XRP being a security.

It is no secret that the crypto market has been through a lot over the last few months.

The global crypto market cap's intense decline

Bitcoin has declined severely below its $32,000 high and is now trading too close to $26,000.

Moreover, fears and uncertainty about Bitcoin's ability to resist a drop to $22,000 remain alive. According to a recent report by CoinShares, the crypto market has lost a whole lot of liquidity over the last ten weeks, with Bitcoin and the rest of the market losing almost $500 million.

However, two cryptocurrencies have gone against the trend, and have managed to stay green over the same timeframe.

In this article, we will be going over the specifics of Coinshares' report, and how Solana and XRP have managed to stay consistently bullish over the last 10 weeks.

$9 Million Net Outflow in the Past Week

According to Coinshares' most recent digital asset fund flow weekly report, the crypto market had a net outflow of $9 million during the previous week, bringing the total to almost $464 million over the previous 10 weeks.

Weekly crypto outflows

According to Coinshares, digital asset management firms including CoinShares, Grayscale, 21Shares, Bitwise, and ProShares have also been severely affected by outflows of this magnitude.

Digital asset managers feel the heat

The outflows may have been $9 million this week. However, things were much worse over the last week.

Coinshares shows that the crypto market lost a whopping $54 million two weeks ago, only continued by this week's $9 million.

More Crypto HODLers Live in Europe

In detail, Coinshares' report shows that Europe showed more resistance to the crypto market's outflows than any other region in the world.

Europe shows strength

Europe also saw inflows of about $16 million over the last week and the regional mood discrepancy, according to James Butterfill, Research Head at CoinShares, might be attributed to regulatory differences in separate regions.

For context, US residents withdrew an almost equivalent amount, at about $14 million worth of withdrawals.

Bitcoin Suffers While Solana and XRP Thrive

Bitcoin, the flagship cryptocurrency, has also suffered a massive withdrawal spree.

The cryptocurrency has witnessed outflows for three weeks in a row, with a nail-in-the-coffin of -$6 million this past week.

Solana and XRP show strength

Ethereum also suffered, but not as much as Bitcoin did.

Ethereum, according to Coinshares, has lost about $2.2 million over the last week.

However, what is interesting is that XRP and Solana took the lead, instead witnessing $300,000 and $700,000 in inflows respectively, over the last week.

XRP and Solana in Price Charts

According to CoinMarketCap, XRP and Solana haven't been consistently bullish, despite investors' apparent interest in both

In particular, XRP is trading at $0.50, up 0.82% from the previous day. Solana, on the other hand, is down by 1% over the last day and is trading at $19.31 at the time of writing.

XRP and Solana's prices track one another

Interestingly, however, both cryptocurrencies show remarkable similarities in price action and have been tracking one another since mid-July, when Ripple beat the SEC in court over the issue of XRP being a security.

Solana's price tracked that of XRP's and increased marginally to about $28.

Ever since then, the behaviour of both cryptocurrencies has been similar, with minute differences here and there.

Is this price correlation between the two a sign of a deeper story, or is all of this some insane coincidence?

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.