The cryptocurrency market experienced nominal gains, with Solana leading the way with a 16% weekly increase driven by institutional demand. Overall market capitalisation reached $2.67 trillion, while Bitcoin traded at $84,499 with a 1% rise. Institutional investors have increased Solana inflows, particularly with anticipation of potential spot ETF approvals, reinforcing bullish sentiments among market participants.
Digital assets maintained nominal gains to conclude the week, indicating a potential for overall recovery in the cryptocurrency market. Most assets showed consolidation on previous double-digit gains, shattering resistance levels due to positive news that enhanced trader confidence. The total market capitalisation for digital assets climbed by 2% to reach $2.67 trillion, with weekly gains surpassing 5.5%.
Solana emerged as a frontrunner, outpacing other top cryptocurrencies due to substantial institutional demand. Over the past week, bullish investors purchased significant quantities of Solana, which led its market value to rise to $134.90, reflecting a remarkable 16% increase. Contributing factors included increased institutional interest, whale accumulation, speculation on spot ETF approvals, and heightened trading volumes.
Looking ahead, bulls are targeting the $150 milestone for Solana, which could further trigger market activity once its capitalisation reaches $69.7 billion. Despite Solana’s impressive weekly performance, other cryptocurrencies encountered difficulties, largely due to the fallout from macroeconomic tightening. Ethereum, for instance, saw a decline in its gains following the sale of over 140,000 tokens, resulting in only a 2% net inflow for the week, starkly missing the anticipated 9%.
Crypto prices previously faced declines due to escalating trade tensions within the United States, which adversely affected Bitcoin and led to significant outflows from altcoins. Although Bitcoin retested the $80,000 region, weekly inflows tempered as traders reacted to overheated market conditions. Currently, Bitcoin trades at approximately $84,499, recording a modest 1% increase over the past week.
Despite the gains from long-term holder sentiment and bullish whale-to-exchange ratios, retail investors withdrew cautiously due to the lingering impact of recent market dips. XRP observed inflows of 2.3% over the week, while meme assets also exhibited notable gains, contributing to a broad-based recovery among altcoins following mid-week sales.
Institutional investors have played a pivotal role in Solana’s rebound, significantly increasing their inflows as they seek opportunities to position themselves ahead of the next market upturn. Solana remains a favourite among institutional investors, especially in anticipation of forthcoming spot SOL ETF approvals in the U.S. After weeks of low trading, the asset has drawn renewed interest from institutional funds, suggesting a shift in momentum from larger players.
Crypto enthusiast Johnny reiterated bullish sentiment for SOL, particularly if a spot ETF gets approved, commenting, “I think one of the smartest plays during this sell-off is accumulating a Solana position in anticipation of the SOL ETF later this year.” Expectations for this occasion mirror the substantial institutional interest following last year’s approval of spot Bitcoin products.
