Why Solana is up today amid a sea of red for major cryptos

The top cryptocurrency continues to push higher, despite market-related headwinds.

| More on:
A smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the EMvision share price rising

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Solana (CRYPTO: SOL) is among the few winners in the crypto market today, seeing gains of 5.1% over the past 24 hours, as of 2:30 p.m. ET. This top five cryptocurrency by market cap has seen continued buying, despite weakness in the broader crypto market today.

A range of negative catalysts, from the discovery of the omicron variant in the U.S. to Federal Reserve tapering, have resulted in decreased demand for risk assets. However, investors appear to be diverting their risk-on trades to cryptocurrency tokens with perceived quality, such as Solana.

So what

It appears the (arguably) subjective view of Solana's quality among digital assets is rather widely held. News that the Grayscale Solana Trust had been launched this week has curried favor among retail and institutional investors alike. This trust is expected to accumulate SOL over time, allowing accredited investors to participate in this trust via private placements.

Additionally, it was revealed this week that leading venture capital firms would be putting $4.3 million into a Solana-based metaverse project. This project, code-named Solice, is expected to compete against leading metaverse crypto plays Decentraland and The Sandbox

Now what

The prospect of additional capital inflows into Solana appears to be enticing for investors. Grayscale's move to officially add a Solana trust suggests that big money is looking to chase the returns of Solana, over higher-profile cryptocurrencies such as Bitcoin and Ethereum.

Additionally, the metaverse is a red-hot space right now. The fact that Solana's blockchain is being utilized by developers for new metaverse projects is very bullish for the argument that Solana's ecosystem is one of the fastest growing and most sought after right now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Chris MacDonald owns shares of Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

bull market encapsulated by bull running up a rising stock market price
International Stock News

Despite some big losers, these growth stocks are keeping the Nasdaq bull market going

Investors continue to slowly move away from worries about the economy, inflation, and interest rates, sending growth stocks higher. It's…

Read more »

Three different coloured arrows going up, symbolising a rising share price and record highs.
International Stock News

Why Ethereum, Bitcoin, and Dogecoin jumped this morning

The Merge is near and crypto investors are excited.

Read more »

a girl stands in an apple orchard holding two red apples in raised arms with a happy, celebratory look on her face with a large smile and a pretty country background to the picture.
International Stock News

1 emerging catalyst that Apple investors may have missed

Apple's sales nearly doubled in this potentially lucrative market.

Read more »

blue tesla
International Stock News

Investors should wait for these 2 signals before buying Tesla

Tesla's stock price might have fallen, but buying today does not guarantee good returns to investors.

Read more »

woman delivering Amazon Prime parcel
International Stock News

Why the Amazon share price rose today

Positive inflation news bodes well for the e-commerce leader.

Read more »

man happy while driving tesla
International Stock News

Why today’s jump in Tesla shares surprised investors

Musk may be selling shares, but investors aren't reading too much into it.

Read more »

Green arrow with green stock prices symbolising a rising share price.
International Stock News

Why Bitcoin and Ethereum are rising today

New data hinted that inflation may have peaked in July.

Read more »

Purple tech growth chart
International Stock News

Nasdaq surges after inflation data: Why the top tech and growth stocks moved higher

Although inflation is still above 8%, investors are starting to come back to growth stocks. There will be a lot…

Read more »