One of the market’s leading institutional investors, Grayscale, has updated its list of cryptocurrency investments and added 13 new altcoins to its portfolio. From Solana [SOL] to the polygon [MATIC] and KAVA, Grayscale’s new investments have fueled several altcoins that have rallied since early 2021. While her addition to Grayscale’s portfolio has made market sentiment bullish, there are other factors driving her price rally as well.
In the case of SOL, the rapidly growing ecosystem of projects makes traders optimistic over the long term. The price of SOL has risen to $ 38 while its trading volume has decreased by almost 40% in 24 hours. A decline in trading volume could be interpreted as an accumulation and the beginning of a price rally.
To get started with DeFi and NFT ecosystems and projects, more dealers are signing up for SOL and the number of active dealers has steadily increased. In addition, several Oracle networks such as Switchboard bring feeds into the Solana mainnet. This has increased Solana’s popularity, made it mainstream, and increased demand across the exchanges.
In the case of KAVA, MKR and DOT, too, the social volume seems to signal an imminent price rally. The top features of KAVA make it worthwhile for merchants to pile up, as the network fees are optional and the rewards are relatively high, with the same recently hitting an ATH as well.
Additionally, KAVA has grown into one of the most rewarding DeFi projects since early 2021, with both trading volume and market capitalization increasing at the same time. The increase mentioned is also an indication of increasing demand on the spot exchanges.
Grayscale is known for researching new potential products and this may have led them to consider the trending altcoins of 2021. In particular, the consideration of these altcoins signals the potential for relatively high short-term ROIs. The market capitalization of these altcoins has risen steadily since the beginning of 2021.
In the past week itself, the market capitalization for altcoins such as DOT, MKR and KAVA rose by over 20%. MKR has emerged as a top volume winner several times over the past two weeks, and this makes it further lucrative for altcoin traders to buy MKR for relatively high short-term ROIs. MKR, KAVA, DOT and SOL are likely to rebound based on these metrics.
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