Bitcoin, Cardano and Polkadot have had massive institutional money inflows as top cryptocurrencies. The three managed to outperform all the rest in the third consecutive bullish weeks of October. This is all happening in a time when a vast majority of cryptocurrencies are approaching their ATH.
Bitcoin, Cardano and Polkadot
The digital asset manager CoinShares revealed in their weekly report. As a surprise to no one, Bitcoin stood out on top. However, as bloggers would say, the second and third place might surprise you.
With a staggering total inflow of $80 million, about $70 million went into Bitcoin. It is exactly the 5th consecutive week of inflows for the lucky BTC.
On the other hand, Cardano (ADA) and Polkadot (DOT) were the ones amongst altcoins to stand behind Bitcoin. In the meantime, Ethereum had minor outflows which we will later discuss.
Cardano (ADA) had $2.7 million inflows as Polkadot performed better with $3.6 million inflows.
The Reason for This
Primarily, as the market remains bullish, it is only natural for top performers to gain more capital. Just this past week, CoinShares hit a record of assets under management thanks to the price appreciation and the inflows.
“These inflows, combined with positive price action over the week, have pushed total assets under management (AuM) to US$72.3bn, their highest level on record, surpassing the previous record of US$71.6bn set in May this year.” Says CoinShares.
However, as inflation keeps looming ahead, institutions are hedging against it with Bitcoin and other cryptocurrencies. Read more about inflation and Bitcoin.
Why not Ethereum
Simply speaking, Ethereum is not doing so well right now. High transaction fees and slower network as compared with the competition is primarily what is causing outflows.
There is an ironic story here somewhere as both Charles Hoskinson and Gavin Woods were Ethereum co-founders. To give you the daily dose of gossip here is what happened. They broke up with Ethereum (Vitalik Buterin) due to ideological differences. And now, both their projects are outperforming Ethereum.
On the other hand, Ethereum has promised us a total reformation. Ethereum 2.0 is expected to happen very soon. Until then, the network’s poor performance will likely cause minor outflows.
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