Polkadot wins the hearts of institutions as cash inflow surges – Report

Source: Vladimir Kazakov – Adobe Stock

Polkadot received $7 million of the $27 million net inflow for altcoins according to the report.
Also, there was a $97 million net outflow for the overall digital asset investment products for the second consecutive week.

Polkadot, a decentralized web 3.0 blockchain interoperability platform has emerged as one of the favorites for institutions according to a new report. The report entitled “Digital Assets Fund Flows Weekly” published by digital asset management company CoinShares reveals a growing institutional interest for Proof-of-Stake (PoS) coins. 

“Digital asset outflows continue, evidence suggests a switch to Proof of Stake coins” says @CoinSharesCo’s investment strategist @jbutterfill
Read more from our Digital Asset Fund Flows Weekly report here: https://t.co/MbvaGEUdwi
— CoinShares 👩‍🚀 (@CoinSharesCo) May 25, 2021

Altcoins saw an inflow of $27 million, out of which Cardano received a net inflow of $10 million while Polkadot received $7 million, with its multi-asset capacity receiving $5.5 million.
On the flip side, there was a $97 million net outflow for the overall digital asset investment products for the second consecutive week. This is 0.2 percent of the total Asset Under Management (AUM). This shows a change in public sentiment following the increasing regulation and the environmental concerns on Bitcoin mining.
The outflows for Bitcoin reduced to $111 million last week from $115 million the previous week. Though Ethereum saw a $924 million inflow from year to date, its outflow was $12.6 million last week. 
A hedge fund darling
The growing interest in PoS coins is linked to the increasing pressure for Proof-of-Work coins to migrate to PoS. This is evident in the recent decision by Dubai-based crypto investment fund, FD7 ventures to sell 75 percent of its Bitcoins to buy ADA and DOT. FD7 ventures revealed that their reason to accumulate DOT is the rising importance in the decentralized finance industry. They believe that Bitcoin has already matured due to its high valuation. 
According to a separate report published by the professional services company PwC, Polkadot is actively used in crypto hedge funds. It was mentioned that Polkadot is involved in 28 percent of all funds. This is behind Bitcoin (92 percent), Ethereum (67 percent), Litecoin (34 percent), and Chainlink (30 percent). Aave was behind Polkadot with 27 percent. As part of the Polkadot adoption among retail and institutional investors, Osprey Fund, a digital investment firm, recently introduced Polkadot Trust to provide direct access to DOT investment to wealthy investors.
Polkadot is eco-friendly
Just recently, research by the Cambridge University disclosed the high energy consumption linked to Bitcoin mining. Bitcoin is said to consume higher energy than most smaller countries in Europe. According to experts, the PoS protocol is the best mechanism that enables faster transactions while maintaining lower energy consumption.
Polkadot falls in this category, which means its market share could increase in the future. Recently, Dr. Gavin Wood, founder of Polkadot announced the implementation of the core parachains architecture on the Canary Kusama Chain. Polkadot currently has a market cap of 22 billion, and market dominance of around 2 percent. 

The @Polkadot parachain auctions is setting the stage for a vibrant apps ecosystem with practical interoperability. What are the biggest projects? Who will be the first to launch on @kusamanetwork?
Thread 👇🏻👇🏻👇🏻1/ pic.twitter.com/NMyN1y6PJF
— Mira Christanto (@asiahodl) May 20, 2021

Source link

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...