Various chains in the cryptocurrency market experienced significant capital flows in January. That is according to the latest data shared today by CryptoRank.io.
Over the past 30 days of January, CryptoRank.io studied net capital flows of the top 10 Layer 1 and Layer 2 networks. It engaged in that activity to understand the direction of money flow in public chain protocols.
Top 10 chains with the highest net capital inflows
According to the data released by CryptoRank.io today, Ethereum was the biggest winner. It drew in digital asset investments worth $2.3 billion positive net flow in January. This indicated enhanced investor sentiment toward the second-biggest cryptocurrency.
After Ethereum, Base was the second winner, which recorded positive net flows of $662 million over the month.
Next was Solana with net inflows of 4315 million over the same period. It was followed by Starknet with net inflows of $66.6 million. Meanwhile, Polygon secured the fifth position with positive inflows of $60.6 million.
However, other public chains, including Mode, Sui, Linea, Blast, and Arbitrum experienced negative net flows.
As highlighted in the chart, Mode took position six after it witnessed negative flows of $13 million in January while Sui followed with outflows of $14.5 million.
Linea took the eighth position with outflows of $77.7 million. While Blast secured the ninth spot with outflows of $91.7 million, Arbitrum gained the spotlight with massive outflows of $3.3 billion during that month.
Where are Arbitrum’s outflows going?
As much as Arbitrum has been a prominent player in the digital asset landscape, it is beginning to lose momentum. It appears that with competition in the market, this once-dominant project is feeling the heat. The market always receives new competitors with superior offerings.
Arbitrum has developed a name as one of the prominent L2 solutions for Ethereum by decreasing costs and enhancing scalability. However, the previous month, its price decreased by 46.2%, currently trading down at $0.479. Although this is not a tremendous drop, it signifies a change in investor sentiment, as many look for greater returns from other projects.
In the past 24 hours, its trading volume saw a decline of 41.60%, indicating investors have reduced their interest and are relocating funds elsewhere.
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