Solana Had a Huge Outflow of $485M in February as Investors Flocked to Safer Assets

Solana had a huge outflow of $485 million in February as investors transferred their assets to what they perceived as safer digital assets such as Ethereum, Arbitrum, and BNB Chain.

As macroeconomic uncertainty continues to build, investors are becoming increasingly skittish and are moving their assets to what they perceive as safer options.

According to CCData's latest analysis of blockchain data, February saw a huge outflow of $485 million from Solana as investors moved their assets to Arbitrum, Ethereum, and BNB Chain.

The move is an indication of increasing worry and a lack of interest in new projects, signaling a flight to safer assets. This is also evident in the rising dominance of Bitcoin (BTC) as investors return to the flagship cryptocurrency.

After falling to a 10-month low of 33.7% in January, Bitcoin's market capitalization dominance rose again to 59.6% by the end of February.

This shift from Solana to Ethereum is also part of a larger trend that saw most crypto investors move their funds into Real-World Assets (RWAs) and stablecoins.

Both asset classes saw inflows of over $3 billion as investors sought to mitigate the risks from volatile crypto assets, which saw outflows of about $2.5 billion.

Stablecoins, specifically, hit all-time highs, topping $224 billion, as investors flocked to the low-risk assets.

The analysis also found that the economic turmoil had a huge impact on crypto investors, who were largely focused on emerging trends in the market.

One such trend was the rapid rise of memecoins, which experienced a setback with the failure of Libra token project. The project, which was based on Solana, failed after insiders were accused of siphoning funds.

This led many to question their faith in memecoins and other speculative assets as investors grew increasingly wary of scams and market manipulation.

Moreover, the analysis noted that the recent $1.4 billion Bybit hack, the largest crypto heist in history, also contributed to the anxiety in the market.

As the market remains uncertain, investors are expected to keep searching for safer assets and will likely flock to stablecoins and RWAs, which are expected to hit $50 billion by 2025.