The altcoin that's attracting more institutional capital than Ethereum this week

Hedera is positioning itself as the altcoin attracting the most institutional capital this week, surpassing Ethereum, amid a shift toward infrastructure and tokenization.

Institutional capital in the crypto market is experiencing a shift in direction. For years, Bitcoin and Ethereum have been the natural destination for investors seeking exposure to the cryptocurrency world. However, this week, flows are concentrated in one altcoin: Hedera. 

With a cumulative return of 367% in the last cycle and a focus on enterprise infrastructure and tokenization, Hedera has become the asset that receives the most institutional attention, according to data analyzed by Crypto Block, in its newsletter specialized.

According to the publication, the more favorable regulatory environment emerging in the United States for cryptocurrencies and digital assets is driving institutional interest. To date, this trend reflects a broader movement in which large funds and managers are diversifying their portfolios toward projects that offer scalability, regulatory utility, and concrete applications in the financial world. The narrative of tokenization and Layer 1 infrastructure is gaining ground over simple exposure to crypto assets. 

Hedera attracts large funds with secure and transparent tokenization

Hedera Hashgraph has established itself as a central player in the institutional conversation. Its performance in the last cycle, which exceeded 360%, places it as one of the most profitable assets in the ecosystem. But beyond the numbers, what attracts institutional investors is its value proposition. Hedera offers an enterprise governance model, with a board of members that includes global companies, and a focus on tokenization and payment applications that meet security and scalability standards.

Hedera's narrative fits with what fund managers are looking for: projects that can be integrated into existing financial systems and offer regulatory clarity. In an environment where 81% of institutional investors say they would increase their exposure if they had better information on crypto assets, Hedera presents itself as a "readable" and understandable asset for investment committees.

The Crypto Block report highlights that tokenization is one of the sectors with the greatest potential. Funds such as Bitwise have indicated that the best way to capture this growth is through a set of assets that include Ethereum, Solana, XRP, and Chainlink. Hedera joins this group as a rail business that facilitates the issuance and management of digital assets, making it a natural candidate for institutional allocation.

XRP, Stellar, and other names on investors' radar

Although Hedera leads the way in attracting capital this week, according to the report, it's not the only crypto asset attracting interest from large funds. XRP, with a 240% return in the last cycle, also benefits from a more favorable regulatory environment in the United States, especially following the resolution of its case with the SEC. Its role as a payment lane and its potential for tokenization keep it on the radar of banks and funds seeking exposure to cross-border liquidity solutions.

XLMStellar's native cryptocurrency, , also appears on the list, with a 237% return and a positioning in remittances and digital asset issuance. Its narrative is linked to financial inclusion and the possibility of tokenizing social impact instruments, making it attractive for portfolios seeking thematic diversification.

Solana y Avalanche, for their part, are consolidating as pillars of the Layer 1 (L1) infrastructure. Both blockchain projects have demonstrated their ability to scale decentralized applications and attract developers, making them strategic bets for institutions seeking exposure to the technological foundation of the digital ecosystem. chainlink completes the map as essential middleware for tokenization, by providing a network of oracles that connects real-world data with smart contracts in the crypto world.

The common denominator is clear: institutions aren't betting on a single winner, but rather on a set of projects building the infrastructure necessary for tokenization and decentralized finance to integrate into the global economy.

Institutions seek tokenization and diversification in the crypto world

Institutional capital is taking a diversified approach. According to Crypto Block's analysis, 90% of institutional investors already invest in Layer 1 protocols, while 50% invest in stablecoins and 40% in application tokens. The preference for infrastructure reflects a long-term vision: building portfolios on the foundations of the digital financial system rather than chasing short-term speculative narratives.

Tokenization appears to be the big promise. Sectors such as DeFi, stablecoins, and real-world assets have outperformed Bitcoin this year, with returns hovering between 38% and 45%. For managers, this confirms that value lies not only in speculation, but in the creation of financial products that can be integrated into traditional markets.

Hedera, XRP, Stellar, Solana, Avalanche, and Chainlink are all part of this map. Each contributes a distinct component: from payment rails to smart contract infrastructure and data oracles. The institutional strategy is to build a basket of assets that captures the growth of tokenization without relying on a single project.

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Institutional attention shifts in the crypto market

The attention Hedera is receiving from institutional funds reflects a broader shift in the crypto market. Bitcoin and Ethereum remain central players in the market, but they are no longer the sole destinations for institutional capital. Diversification into other altcoins shows that large funds are seeking exposure to projects with clear use cases, strong governance, and the ability to integrate into the global financial system.

The immediate future points to increased competition among infrastructure protocols and sustained growth in tokenization as the dominant narrative. For retail investors, the lesson is clear: institutions are building positions in assets they consider strategic for the next phase of the market. Hedera currently tops that list, but it's part of a broader ecosystem where infrastructure and utility outweigh speculation.

The bottom line is that smart capital is moving toward where there will be real flows, reliable data, and regulatory utility. Hedera thus becomes the most visible example of this trend, but the full story is one of a market evolving toward the integration of blockchain technology into the global economy.