Institutional Interest Is Shifting towards Altcoins
The growing interest in decentralised projects, the emergence of metaverses and the spread of NFTs have led to increased demand for altcoin smart contracts. Bitcoin retains its status as a store of value, but it can't compete in terms of efficiency with superfast blockchains. In November, the cryptocurrency market's capitalisation rose to a new historical record of $2.85 trillion, with Bitcoin's share down to a three-year low of 43%.
According to CryptoCompare, the aggregate sum of Bitcoin assets under management (AUM) has fallen by 9.5% to $48.7 billion. Ethereum's AUM grew by 5.4% to $16.6 billion, and all other altcoins rose by 10.4% to $2.6 billion. The discrepancy in numbers stems from a stronger correction in Bitcoin and increased investment in other cryptocurrencies.
Institutional investors continue to grow their investment for the third month in a row. The average weekly inflow in Bitcoin has been at $94.4 million. Ethereum is in second with $24.4 million, and Cardano rounds out the Top 3 with $10.7 million. Meanwhile, the 21Shares Solana ETP fund shows the highest profit of 22%, while Bitcoin funds are finishing the month in negative territory.
Bitcoin is leading in the total amount of investment and inflow of funds from institutional investors. However, interest in altcoins is continuing to strengthen. This is leading to the reduction of Bitcoin in global capitalisation and cryptocurrency funds' AUM.
The StormGain Analytical Group
(a platform for trading, exchanging and safeguarding cryptocurrency)