Hyperliquid and Solana lead altcoin's recovery as $1.9 billion flows into cryptocurrency funds

With Bitcoin being above $106,000, it is logical to think that the cryptocurrency market will see a generalized rise in prices. This Monday started positively for major altcoins such as Solana (SOL) and Ethereum (ETH). On the one hand, Solana has seen a 6.1% increase in the last 24 hours, with the price heading towards $156. On the other hand, Ethereum has recovered from a falling streak, positioning itself at $2637.70, up 3.7% in 24 hours.

There is one altcoin that is having its moment of success and surprising everyone. It is Hyperliquid (HYPE), and it has managed to rise 9.7%, driving the price towards $44. According to CoinGlass, traders are estimated to have placed $2.06 million in active bets on HYPE contracts, which we could translate as a growing interest in the cryptocurrency's potential.

Ethereum's performance was a matter of discussion for a long time. After a series of updates to the network, it managed to regain interest from users, although the focus is mostly towards institutional adoption. This could be due to how ETFs manage to significantly impact the numbers in the market, allowing for higher revenue streams.

The SEC is receiving more and more filings for approval of ETFs for the major cryptocurrencies, but the one that is making the most "noise" is Solana, which if approved, will seek to implement a spot ETF with staking capabilities.

However, in a way, an ETF could affect decentralization, at the moment when investment funds hold large sums of cryptocurrencies, which translates into them having possession and control over them. While it is true that what is access to ETFs is equity-based, we should consider how it is that they offer this service, and how they react in case regulations are contrary to the idea of decentralization.

On the positive side, ETFs can bring greater adoption and visibility, allowing more users to participate in the market. Also as we had mentioned before, they manage to attract larger revenue streams, as well as reflect some legitimacy over the cryptocurrency itself and its ecosystem.

Now, how do geopolitical scenarios impact? We know that there are people who take advantage of moments in which they can make investment decisions regarding what is happening in the world. War conflicts many times reflect a buying opportunity when considering a cryptocurrency as a safe haven asset.

There is also another part of the market that leans towards a massive sell-off, affecting the price of the asset. A case to reflect was the heavy liquidation that has happened on Friday, following Israel's airstrikes against certain Iranian targets. This raises uncertainty for traders, having to make decisions that may affect the market.

At this point it could be considered a contradiction, but not all traders manage to react in the same way, while some look for an opportunity, others try to minimize risks, although this could generate a chain reaction towards a significant selling pressure.

According to StealthEX chief growth officer Vadim Taszycki, an estimated $1.9 billion has flowed into cryptocurrency funds, meaning there is institutional interest that is functioning as the main driver of the revenue stream.