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

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

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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.

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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.

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