Altcoins
The Altcoin Rally Is On: Why Solana, Avalanche, and Cronos Are Soaring Today
These three altcoins are significantly outperforming the market today.
The cryptocurrency rally is back. For tokens that support proof-of-stake layer-1 blockchain networks, today’s rally has been pretty incredible.
As of 2:00 PM ET, Solana (GROUND -5.89%), avalanche (AVAX -3.95%), and Chronos (CRO 0.35%) have each posted double-digit gains, up 16.5%, 22.1% and 21.4% respectively over the past 24 hours. A mix of broadly bullish macroeconomic conditions and risk appetite appears to be pushing a majority of risk assets higher today, which has also led to moves in higher-risk and higher-risk digital assets during today’s session.
That said, these cryptocurrencies Each of them has its own unique catalysts that are worth a closer look. In particular, there are some pretty significant bullish predictions emerging, given the growth that these three crypto networks have seen in terms of trading volume and fundamental metrics.
What drives these incredible movements?
Solana may have been in the headlines in recent days, with a positive endorsement from Cathie Wood earlier this week. Wood noted that Solana’s impressive adoption, tied to its relatively low-cost platform and high transaction speeds, reflects the significant utility that Solana continues to generate for end users. Additionally, past issues with downtime appear to have been resolved, and a shift toward user preference for speed and cost as the top priority will likely continue to drive the network’s outperformance.
Avalanche has received similar support from some rather reputable parties. As collaborators, financial institutions JPMorgan Chase and Apollo Global and crypto players LayerZero Labs and Avalanche have continued to advance the “revolution of the asset and wealth management industry” by enabling the streamlining of “fund subscriptions and redemptions offered by WisdomTree Prime.” Using Avalanche’s subnets, which are individual blockchains tailored to specific needs, this collaboration (codenamed Project Guardian) highlights the value that blockchain networks can bring to improving the way traditional finance works.
Cronos saw his an incredible momentum Last week’s rally continues, with today’s rally being tied to previous catalysts related to a $100 million accelerator program launched in September. The hope is that Cronos will be able to create partnerships similar to those seen in this space (such as Avalanche’s), creating a bigger moat around its crypto payments network via Crypto.com.
Can this dynamic continue?
I believe that crypto networks like Solana, Avalanche, and Cronos provide the kind of end-market utility that is needed for investors to continue to have a positive outlook on the altcoin space. For these utility-based crypto projects to create value for investors via rising token prices, adoption and usage metrics will need to continue to improve. On this front, each of these networks has posted strong numbers of late, suggesting that investors are taking a more fundamentals-driven approach to valuing these ecosystems.
The rally that has materialized so far in 2023 has been quite remarkable, considering the bearish sentiment of the past year and the overall returns provided by many tokens in the altcoin space in 2022. That said, as investors look forward to lower interest rates in the medium term, it is entirely possible that the type of environment investors experienced in 2020 and 2021 could come back into play at some point, sooner than many think.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Chris MacDonald has positions in Solana. The Motley Fool has positions in and recommends Avalanche, JPMorgan Chase, and Solana. The Motley Fool has a disclosure policy.