{"id":2568,"date":"2023-10-18T17:22:45","date_gmt":"2023-10-18T17:22:45","guid":{"rendered":"https:\/\/solanacrypto.news\/2023\/10\/18\/why-solana-cardano-and-litecoin-are-surging-today\/"},"modified":"2023-10-18T17:22:45","modified_gmt":"2023-10-18T17:22:45","slug":"why-solana-cardano-and-litecoin-are-surging-today","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2023\/10\/18\/why-solana-cardano-and-litecoin-are-surging-today\/","title":{"rendered":"Why Solana, Cardano, and Litecoin Are Surging Today"},"content":{"rendered":"
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
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The cryptocurrency<\/a> market is booming once again. Led by incredible moves in some of the largest-cap tokens<\/a>, this sector has seen a surge in interest as a potential way for investors to hedge against risks to the banking system and the U.S. dollar. That\u2019s due primarily to an accelerated decline in the stock of the bank First Republic\u00a0<\/strong>(FRCB)<\/span>, which is down more than 30% this morning after reporting earnings and showing more than $100 billion of deposit outflows.
As of 11:15 am ET on Wednesday, Solana <\/strong>(SOL -1.98%<\/span>)<\/span>, Cardano\u00a0<\/strong>(ADA -0.79%<\/span>)<\/span>, and Litecoin\u00a0<\/strong>(LTC -1.18%<\/span>)<\/span> are among the biggest gainers of the top 15 cryptos, surging 8.6%, 9.1%, and 3.6%, respectively, over the past 24 hours.
There are many reasons investors have diversified into digital assets in recent years. Of course, the incredible upside this asset class has provided, relative to even the frothiest growth stocks in the post-pandemic era, has been a major catalyst for capital inflows into the sector.
But crypto purists (those who invested in projects like Bitcoin\u00a0<\/strong>(BTC -0.92%<\/span>)<\/span> before they took off) tend to rely on other investing theses to continue to hold digital currencies. One of the key concepts many crypto investors have adopted is the idea that cryptocurrencies can provide an alternative to the banking system, which has faltered in the past.
Bitcoin was born in 2009, largely as a result of the Great Recession and the banking crisis that led to it. Litecoin, launched in 2011, was another very early option for investors and is often viewed as a smaller version of Bitcoin, due to many similarities between their networks.
However, since Bitcoin and Litecoin came on the scene more than a decade ago, other utility-generating projects have popped up, many of which provided even greater upside during the previous bull market.
Solana and Cardano are two proof-of-stake blockchain projects, each seeing impressive user growth over the years, mainly due to the adoption of smart contracts and the growth of decentralized finance (DeFi)<\/a> in this time frame.
Crypto investors might notice that the moves Solana and Cardano have made over the past 24 hours have outpaced the top dogs, suggesting that interest remains high with these two top DeFi projects, relative to their proof-of-work friends. And while Litecoin has underperformed Bitcoin, it\u2019s still up more than 32% year to date, suggesting this is a token that investors can use to ride the \u201csafety trade\u201d higher.
The utility Solana and Cardano provide, as well as their status as top-10 crypto projects by market capitalization, could lead to capital inflows from institutional investors looking to hedge against currency and banking risk. Today, that thesis appears to be playing out, and we\u2019ll have to see if it holds water.
But for now, crypto investors have one key catalyst that\u2019s driving the boat. Accordingly, I expect to see investors look for higher-growth projects to ride this wave of momentum, at least over the near term.
Chris MacDonald<\/a> has positions in Solana. The Motley Fool has positions in and recommends Bitcoin, Cardano, and Solana. The Motley Fool has a disclosure policy<\/a>.<\/em>
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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.Founded in 1993, The Motley Fool is […]<\/p>\n","protected":false},"author":1,"featured_media":2569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/2568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=2568"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/2568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/2569"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=2568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=2568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=2568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}