Crypto Market Recovery: $2.1 Billion Inflows Boost Altcoin Prospects
The cryptocurrency market may be showing signs of recovery as U.S. spot crypto exchange-traded funds (ETFs) saw $2.1 billion in net inflows in the week ended Aug. 28, with about $321 million of that sum entering altcoin funds.
This influx of capital is a positive sign for three altcoins: Solana, Zcash, and Hyperliquid. The success of their corresponding ETFs suggests that investors are optimistic about these coins' future trajectory.
Solana's spot ETF experienced inflows of $153.8 million in the week ended Aug. 28, more than five times the prior week. This is partly due to a vote by network validators approving a proposal called SGP-0002, which will double the rate at which new Solana coin issuance declines.
Meanwhile, Zcash got its first spot ETF on Aug. 25 when Grayscale listed The Zcash ETF. Although there's no data on inflows, the coin's price is up by more than 45% in the five-day period ended Sept. 7.
Hyperliquid's buybacks just got a free tailwind with the activation of a deal it signed earlier this year with Coinbase Global and Circle Internet Group. This deal will deliver about 90% of the cost-adjusted interest earned on USDC stablecoins to Hyperliquid, adding as much as $160 million for buybacks per year.