Why Solana, Avalanche, and Cardano Are Skyrocketing Today
-
Solana, Avalanche, and Cardano continue to benefit from a broad-based rally bringing most cryptocurrencies higher of late.
-
However, these projects also have their own unique catalysts that are worth considering.
-
Here are a few of the major partnerships and network updates that appear to driving today’s price action, at least in part.
It’s starting to feel a lot like 2021 again, at least for cryptocurrency investors. The broad-based market rally in digital assets is continuing, with Solana (CRYPTO: SOL), Avalanche (CRYPTO: AVAX), and Cardano (CRYPTO: ADA) among today’s biggest winners. As of 2:45 p.m. ET, these three tokens have surged 5%, 11.3%, and 5.7% respectively since 4 p.m. ET yesterday.
These moves come as the world’s largest cryptocurrency, Bitcoin, continues to march higher, recently breaking through the $110,000 level. Thus, this market rally can certainly be perceived as one that’s not only top-down (Solana, Avalanche, and Cardano are all top-15 tokens by market capitalization), but it’s pervasive as well, with tokens of varying sizes also outperforming equities and other risk assets right now.
With that said, let’s dive into some of the token-specific catalysts taking these three cryptos higher today.
For investors in these top-tier crypto networks, fundamentals matter. Not in the conventional sense, as is the case with stocks — crypto networks like Solana, Avalanche, and Cardano don’t necessarily have revenue, earnings, and cash flow for valuation purposes. But there are key growth metrics for investors looking to place a value on the ecosystems they’re interested in, from daily active users, to wallets holding these tokens, to overall transaction activity.
Solana, Avalanche, and Cardano have seen strong growth over the years on these key metrics, driven in part by the willingness of the developer teams behind the scenes to work with outside companies and industries to grow their reach. Solana’s recent partnership with R3, a U.K. developer of blockchain technology for a range of traditional financial institutions, is a great example of such a growth strategy. This partnership, announced today, could provide a meaningful growth engine for Solana investors over the long term.
Avalance and Cardano have seen their own similar catalysts form in recent days as well. For Avalanche, a move from FIFA to team up with the leading decentralized blockchain ecosystem does appear to have spurred additional investor interest in the highly scalable network. The overarching goal with this partnership appears to be to build on top of FIFA’s previous moves into the non-fungible token (NFT) market, targeting Avalanche as a key partner in this endeavor.