Some crypto assets presented impressive recoveries, but that might not be the case with Polkadot and Cardano, regardless of the demand.
- Institutional market players appear to have shifted focus from BTC to alts.
- This week experienced the highest institutional outflows in over four months.
- Most in-demand cryptos (DOT, ADA) also recorded the worst performances.
Institutional investors finally revealed their stance amidst attempted recoveries, and it’s surprising as they went against expectations.
BTC at the Back Seat
According to CoinShares seven-day netflow data, the week concluding 20 May recorded $141 million outflows, the highest seen in over four months. The prior week has these institutions recording inflows worth $247M regardless of the massive crashes as the crypto space lost billions.
Surprisingly, this week presented previously unobserved shifts. Most sessions of 2022 saw BTC as the most preferred crypto, seeing higher inflows, whereas Ethereum exhibited bearishness. However, the week had Bitcoin joining the ETH category, the leading crypto witnessing $153.5 million worth of outflows. Meanwhile, Ethereum’s stood at $300K.
With no other token experiencing massive inflows to outshine BTC, most institutions turned to Cardano and Polkadot as the most preferred cryptos to invest in for now. The alts noted inflows of $1 million, whereas their rivals Tron, Solana, Ripple, and Litecoin represented the sub-$1 million categories.
Meanwhile, Solana remained with the highest value within the alt category, surpassing the dominant Ethereum on YTD. SOL maintained positive flows at $102 million since 1 January 2022. Contrarily, Ethereum recorded outflows totaling $239 million in the same timeframe.
Relationship Between Polkadot and Cardano
Besides being on the highlight this week, the duo presented similar price trends since their respective ATHs. Polkadot and Cardano lost approximately 84% since hitting their record peaks. DOT, hovering around $10.04 in about fourteen days, has only recovered 17% and remained 40% from the next critical support level at $14.04.
Meanwhile, Cardano is yet to see a high recovery, matching DOT, as it gained 9.75% from the 9 May lows. Trading at $0.518, the alternative token rescued itself from oversold territories but still lingered within the bearish territory.