Solana (SOL), a rival to Ethereum (ETH), has seen a dramatic increase in investor allocations this year, according to a recent survey by CoinShares.
Growing Interest
The survey polled 64 investors worldwide, representing $600 billion in assets under management. It found that investors are diversifying their portfolios by allocating more to altcoins, with Solana being a top choice.
Reasons for the Rise
According to the survey, the surge in Solana allocations is attributed to a few large investors, who have significantly influenced the results. XRP, on the other hand, has seen a decline in interest, with no respondents currently holding it.
Digital Assets Gaining Traction
Digital assets now account for an average of 3% of investors’ portfolios, the highest level since CoinShares began its survey in 2021. Institutional investors have played a significant role in this growth, as they now have access to Bitcoin through US ETFs.
Barriers to Entry
Despite the growing interest, regulation remains a major barrier to entry for some investors, particularly in the wealth management and institutional sectors. However, fewer investors now believe that digital assets lack a fundamental investment case.
Market Update
As of writing, SOL is trading at $135.12, down over 6% in the past 24 hours. It remains the fifth-largest cryptocurrency by market capitalization.
