Decline in Solana Meme Coins Sparks Record $39M Outflows Amid Bearish Shift

As the market turned bearish, meme coins on Solana – once notorious for their explosive popularity – are now seeing a decline.

This appears to have adversely affected Solana-based investment products which experienced record outflows of $39 million over the past week due to a sharp drop in meme coin trading volumes.

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin led with $42 million in inflows, a moderate figure, but the $1 million outflows from short-Bitcoin ETFs for the second consecutive week suggest that investors remain confident in Bitcoin’s strength, betting on its continued rise.

Ethereum’s inflows were $4.2 million, with new providers attracting $104 million but Grayscale facing $118 million in outflows. XRP saw $0.4 million in weekly inflows during the same period.

Overall, digital asset investment products recorded weekly inflows of $30 million, though this modest figure concealed varied trends among different providers, as revealed by the leading European alternative asset manager. The report also stated that established players are losing market share to new issuers.

Weekly trading volumes declined to $7.6 billion, about 50% of the prior week’s volume, as recent macroeconomic data suggested the Fed may not cut interest rates by 50 basis points in September.

From a regional perspective, flows appeared to be “very mixed.” The US, Canada, and Brazil saw inflows of $62 million, $9.2 million, and $7.2 million respectively. Sweden also noted weekly inflows of $2.2 million.

On the other hand, Switzerland and Hong Kong saw the most significant outflows totaling $30 million and $14 million respectively.