According to a recent CoinShares poll, institutional investor tastes have changed significantly, with Solana (SOL) seeing a notable increase in allocations. 64 investors overseeing a combined $600 billion in assets were surveyed for the Digital Asset Fund Manager Survey, which demonstrates the increasing interest in altcoins, especially Solana.

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With over 14,000 tokens in circulation and a $2.4 trillion market capitalization, more might not always be better

. Forbes has identified a set of 20 cryptocurrencies, nicknamed "zombie blockchains," that, in spite of their lack of user acceptance and real-world utility, continue to command high market prices.

Notable names on the list include Ethereum Classic (ETC), Cardano (ADA), Litecoin (LTC), Bitcoin Cash (BCH), and Ripple (XRP).

They are distinguished by their continuous trade and operation without achieving useful goals.

The phrase "zombie blockchains" describes blockchain initiatives that, similar to the undead, exist but show no signs of vitality in the form of significant user bases or usefulness.

Rather than because they have fulfilled their technological or useful objectives, many tokens survive—and occasionally even prosper financially—because of speculative trading and significant initial funding.

According to Forbes analysts, the original purpose of Ripple's XRP was to rival the SWIFT banking network by enabling quick and inexpensive international bank transfers.

It hasn't been able to unseat SWIFT, though, and now it mainly depends on speculative trading to maintain its high market value, with very little income coming from actual network usage.

Sapphire "Most of it is useless, but the XRP token still sports a market value of $36 billion, making it the sixth-most valuable cryptocurrency,” analysts described.

“Ripple Labs is a crypto zombie. Its XRP tokens continue to trade actively, some $2 billion worth per day, but to no purpose other than speculation.Not only is SWIFT still going strong, but there are now better ways to send payments internationally via blockchains, especially stablecoins like tether, which is pegged to the U.S. dollar and has $100 billion in circulation,” they added.

Similarly, hard forks like Litecoin, Bitcoin Cash, Bitcoin SV, and Ethereum Classic are valued at over $1 billion but are underutilized, g more as speculative investments than practical applications, according to Forbes.

These tokens often result from disagreements within developer communities and persist due to their historical significance or the inertia of speculative trading.

“What’s keeping these zombies alive is liquidity,” analysts cited a VC’s statement.

Analysts also pointed to the “Ethereum killers,” such as Tezos (XTZ), Algorand (ALGO), and Cardano (ADA), as a major part of this phenomenon.

Despite technological advancements and substantial valuations, these tokens have not seen major adoption or activity.

Although they offer advanced transaction processing capabilities, they have difficulty converting these capabilities into widespread acceptance or developer engagement.

“Some blockchain zombies seem to trade solely based on the popularity of their creators.Cardano, another Ethereum competitor, was launched in 2017 after its cofounder, Charles Hoskinson, had a falling-out with Buterin, his Ethereum cofounder,”

analysts suggested that speculative interest in Cardano is mainly driven by its founder’s prominence.

Forbes’ report also touches on the lack of governance and financial accountability mechanisms in these blockchain entities, which operate without regulatory oversight or obligations to shareholders.

This complicates efforts to assess their viability or financial health, as seen in cases like Ethereum Classic, which continues to be traded actively despite suffering major security breaches.

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A recent survey conducted by CoinShares has unveiled a significant shift in institutional investor preferences, with Solana (SOL) experiencing a substantial increase in allocations.

The Digital Asset Fund Manager Survey, which polled 64 investors managing a combined $600 billion in assets, highlights the growing interest in altcoins, particularly Solana.

“Investors have been broadening their exposure to altcoins, with Solana seeing a dramatic increase in allocations.”

The survey revealed that nearly 15% of participants now hold investments in SOL, a notable rise from previous surveys, including January’s results, which showed no institutional investments in Solana.

Sapphire

While Bitcoin and Ethereum continue to dominate the market, with more than 25% and just under 25% of respondents invested in these assets respectively, investor sentiment appears to be shifting.

Bitcoin remains the preferred asset, with 41% of investors bullish on its growth outlook, albeit a slight decrease from previous surveys.

Ethereum, on the other hand, has seen a dip in investor confidence, with about 30% of respondents optimistic about its future, down from 35%.

By comparison, Solana is becoming more popular among investors; of those surveyed, 14% were positive about the company's growth prospects, an increase from roughly 12% in the prior study.

Solana's growing market presence and new technology developments align with the increased demand in the product.

The poll also showed that, for the first time since the survey's commencement in 2021, digital assets now make up 3% of the average investment portfolio.

The launch of US spot Bitcoin ETFs, which has allowed institutional investors to have direct exposure to Bitcoin, is primarily responsible for this growth.

Even while institutional cash has been flowing into cryptocurrencies like as Solana, the paper points up major obstacles to wider use.

Regulation is still a major concern, as many investors see it as a major barrier to future financial commitment within the asset class. As observed by Butterfill:

"While regulations continue to be a barrier, it's encouraging to see that worries about custody and volatility are waning."

The study also showed that although there is still a lot of investor interest in distributed ledger technology, there is a noticeable shift in the belief that cryptocurrencies are a solid value investment.

Due to rising customer demand and strong price movement, the proportion of investors who think digital assets are "good value" increa

sed from under 15% to over 20% between January and April.