Despite the recent uptick in the price of Solana, investors should proceed with caution.

Despite its high volatility, February proved to be relatively benign for Solana. After the 20 percent rally, the overall gains and losses canceled each other out, and the month's total changes were 0.13 percent.

Solana, on the other hand, outperformed nearly every major altcoin in terms of investor performance.

CoinShares data shows that no other cryptocurrency, aside from Bitcoin, has been able to record inflows of more than $10 million. Many were unable to detect any influxes at all. A total of $20 million has been withdrawn from Binance, Polkadot, and Tron since the beginning of the month.

The altcoin king Ethereum, on the other hand, saw outflows totaling $109 million. Actually, Ethereum had more outflows than inflows in the last 24 hours of trading.

Solana leads monthly inflows as well as weekly outflows | Source: CoinShares
Solana leads monthly inflows as well as weekly outflows | Source: CoinShares

Nonetheless, by the end of the month, Solana had brought in about $9 million. Although $2.6 million was withdrawn from the altcoin last week, it still ranked first in February's outflows. However, Solana had a less-than-ideal month in February. Solana's NFT front took a beating in addition to the market turbulence.

Early on in the month, NFT transactions were brisk. By the middle of February, they had dropped significantly.

The leading Solana NFT marketplace, MagicEden, saw an 81 percent drop in NFT transactions while other marketplaces continued to operate at their normal pace.

Solana NFT transactions this month
Solana NFT transactions this month | Source: Dune – AMBCrypto

After reaching a monthly high of 312k NFTs in mid-February, daily transactions had dwindled to just 19k NFTs.

In spite of this, the recent social boost from Gemini suggests that Solana investors may have an excellent March. Coins such as Solana are now supported on one of the most popular cryptocurrency exchanges in the world, Gemini.

As of this writing, Solana is the eighth largest cryptocurrency and the sixth largest DeFi chain. Moreover, with the coin currently trading at $104.66, up 16 percent from yesterday, it could continue to grow at a rapid pace.

Solana price action
Solana price action | Source: TradingView – AMBCrypto

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

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