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Smart Money Flows Into ETH, SOL, and RWAs,While Stablecoins Decline: Report

Ethereum and Solana are the key players for derivatives, while Ondo Finance continues to make waves in the RWA space.

Stablecoin movements are signalling a continuation of the current rally.

Shuffling of Assets

Bybit, the world’s second-largest exchange by trading volume, has released its latest Smart Money Report, which focuses on analyzing institutions and influential traders, as well as their allocation strategies.

According to the most recent data, ETH has become the crowd favorite, with SOL trailing closely in second place, having climbed out from the depths of underperformance during this bull run. Moreover, the increasingly popular trend of real-world assets (RWAs) is shaping the narratives of DeFi.

The review has noted that Smart Money is holding onto BTC, ETH, and a few other alts. Portfolios of those mentioned earlier, along with ONDO, UNI, and WLD, seem to be the main drivers. The diversification hints at a broad range of considerations for both professional and everyday investors.

Key observations from the report state that at the top of holdings are Ethereum derivatives, namely Liquid Collective’s staked ETH (LsETH), signaling confidence of organizations in the asset and its use cases.

Smart Money token balances. Source: Nansen

Ondo Finance’s (ONDO) close ties to the RWA market are paying dividends. With the convergence of traditional finance (TradFi) and decentralized finance (DeFi), the tokenization movement is gaining significant traction worldwide.

Uniswap (UNI) has quietly established a significant presence in Smart Money portfolios, having gained just under 40% over the past month, according to the most recent data from CoinMarketCap. The growth of the native token of the DEX could signal future protocol upgrades that have not yet been publicly announced.

We can see an equally interesting picture in Smart Money trades.

Smart Money token movements. Source: Nansen

It can be seen that SOL-related derivatives are taking center stage, with capital slowly rotating away from ETH. With Solana currently being Ethereum’s main rival in the smart contract platform space, it will be interesting to see if the momentum can keep up.

Meme coins appear to be on the rise again, with BONK and PENGU being favorites, each posting gains of 90% and 170%, respectively, over the past month, according to data from CoinMarketCap.

Sky, previously known as MakerDAO, is a notable mention here, with recent listings on major CEXs driving liquidity and amplifying investor interest.

What About Stablecoins?

This chart from the intelligence platform Nansen can serve as a good guide to the health of stablecoins in the cryptocurrency universe.

Source: Nansen

While we can’t consider it “bad,” we can deduce that major cryptocurrency exchanges are recording decreasing levels of stablecoin reserves, over a 3-month low.

We can interpret this as a “risk-on” sentiment, as declining levels of stablecoins on exchanges signal an increase in the accumulation of various assets, rather than holding onto capital.

Pranešimas Smart Money Flows Into ETH, SOL, and RWAs,While Stablecoins Decline: Report appeared first on CryptoPotato.


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