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Institutional investors have shifted their attention from Ethereum to competitive layer-1 blockchains of late, with capital inflows for altcoin investment products increasing last week, whereas Ether (ETH) products announced outflows for the third week in a row. Knowledge from CoinShares’ latest Digital quality Fund Flows report shows that investors last week (ending on Friday) loaded abreast of $3.5 million prices of Avalanche (AVAX), Solana (SOL), Terra (LUNA), and Algorand (ALGO) funds. In comparison, capital outflows from Ether products destroyed $16.9 million.
Ethereum products witnessing notable outflows
It marks the third straight week that Ethereum products have seen outflows, transferring the whole over that point to $59.3 million, adequate to around 35% of the year-to-date outflows of $169 million from the second-largest blockchain.
Notably, investors conjointly favored digital gold last week despite some recent hesitancy, with Bitcoin (BTC) products attractive $2.6 million prices of inflows.
Over the past ten weeks, inflows to Ethereum products have reached solely $68.5 million, which may signal a pessimistic trend by establishments towards the main blockchain. Total outflows over the past three weeks have seen $219 million leave the market, in addition to that variety cooling last week, winding all the way down to simply 7.2 million, a stark distinction from the $134 million that left the market within the 1st week of April.
Ether killers are growing in popularity
Alternate layer-1 blockchains are growing in quality recently, and redistributed application (DApp) usage on Solana within the last seven days has inflated, consistent with metrics from DappRadar. Usage for the decentralized exchange (DEX) sea wolf has adult nearly 43% over the week, and automatic market maker (AMM) Raydium has seen a 15.5% increase, with volume in its app reaching over $1.5 billion.
Whereas the metrics for Avalanche’s DApp usage haven’t increased over the week, the blockchains’ investments in incentive programs and millions spent luring developers to the platform have traders optimistic about the long run of AVAX.
The AVAX, SOL, Luna, and ALGO inflows were $1.8 million, $800,000, $700,000, and $200,000, respectively, whereas Bitcoin saw inflows leveling to $2.6 million for the primary time in 2 weeks. Analysts noted that month-to-date outflows for the biggest crypto stay at $178 million.
Despite the recent run of outflows, the analysts note that year-to-date flows remain positive, with $389 million returning into crypto assets since the beginning of the year.
