What happened
Today, nearly all cryptocurrencies touched positive territory, a welcome move for a sector that has seen some rather bearish momentum materialize this week. In the alt coin space these gains were pronounced, with the popular token Solana (CRYPTO:SOL) seeing intraday gains of 9.8% at its high today.
However, alt coins Enjin Coin (CRYPTO:ENJ) and Arweave (CRYPTO:AR) both vastly outpaced Solana. Enjin Coin appreciated 24.4% at its intraday high, while Arweave saw intraday gains as high as 15.7%.
Enjin Coin hit a high today of $3.73, which is within spitting distance of this token’s all-time high at $4.
Image source: Getty Images.
So what
Many experts have tied Solana’s price action to the moves in larger cryptocurrencies such as Bitcoin. A top-five token by market capitalization, Solana now represents what many believe could be one of the top blockchain networks for some time. Accordingly, there’s what appears to be a prevailing belief that tokens that have outperformed prior to this week’s volatility could continue to do so.
For Enjin Coin, investors appear to attribute this success to the rising popularity of non-fungible tokens (NFTs). Enjin Coin supports a network for NFTs on the Ethereum blockchain. Given the surging capital flows into the NFT space, investors appear to be targeting Enjin Coin as one of the key ways to play this trend.
In the case of Arweave, interest around Web 3.0 and this blockchain’s data storage capabilities remains high. It appears much of the move in AR today was related to a reversion of the downside pressure investors in Arweave saw earlier in the week.
Now what
Whether there’s some recency bias baked into these alt coin moves remains to be seen. However, for now, momentum traders in the crypto world appear to be driving the best-performing tokens higher.
In the alt coin space, Solana, Enjin Coin, and Arweave are all alt coins investors should keep on their watch lists right now. Each of these tokens appears to be regaining momentum after what has been a rather rough week in the crypto markets.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.