What’s in Store for Solana in March?

Given all the volatility we’ve seen with Solana (CRYPTO:SOL), is now the time to jump in, or should investors be patient with this top crypto?

The crypto market has been in flux of late. Indeed, much of the recent volatility we’ve seen in the crypto world has been positive in recent days — a big win for investors. However, for Solana (CRYPTO: SOL), it’s been a relatively rough few months.

This top cryptocurrency, which was in the top five in terms of market capitalization, has since dropped to ninth spot. Still, it’s a top-10 token, but there are many investors who may be wondering if Solana has further to fall. After all, a series of network disruptions and other issues have shaken many investors’ faith in this top token.

That said, there are a couple upcoming catalysts in March that investors should watch. Here are two of the key factors I’ll be watching this month for Solana.

GameFi taking centre stage

Solana has recently launched its Solana GameFi project, with the help of $2.5 million in funding. GameFi essentially builds on the growth we’ve seen in “play-to-earn” blockchain-based games. These games combine the worlds of decentralized finance (DeFi) and video games (Gaming), making them intriguing growth opportunities for crypto investors.

Solana’s hope is that its GameFi platform can continue to take off. Late last year, Solana and other platforms saw a surge in interest among investors looking to put their capital to work in this space. The hope is that this fund will leverage the core strengths of Solana as a high-throughput blockchain, making various AAA game titles a reality.

I’m bullish on this long-term trend and think Solana could be a big winner in the play to earn space. Accordingly, I think March will be a big month, as investors will be watching for new releases and project updates.

DAOs: The hot topic of the crypto space

DAOs, or decentralized autonomous organizations, could be best defined as yet another buzzword in the crypto space. These DAOs represent structures that replace traditional hierarchies in decision making for crypto projects. As it turns out, Solana is the latest blockchain to gravitate toward a DAO-linked future.

Solana has launched Squads, a platform to allow users to deploy DAOs on the Solana blockchain. Essentially, blockchains are fighting for market share in many growth areas. The development of DAOs on various blockchains is one such space. Currently, the leader, by far, is Ethereum in this realm. However, Solana’s Squads infrastructure looks to change that.

Squads’s mainnet launch took place at the recently held Solana Hacker House event. A $5 million strategic funding round announcement followed this launch. Accordingly, investors will be watching how this Squads platform performs, as Solana’s ecosystem looks to broaden. For now, this is an interesting catalyst investors will want to keep an eye on in March.

Bottom line on Solana

Solana is one of the top cryptocurrencies I remain very bullish on. This cryptocurrency represents a fast-growing ecosystem with the potential to really disrupt existing players. Few other networks pose this threat to large networks such as Ethereum.

For those thinking long term, this is a token to consider. In my view, March could be a big month for Solana. Let’s see how everything shakes out.

Fool contributor Chris MacDonald owns Ethereum and Solana. The Motley Fool owns and recommends Ethereum.

More on Investing

A series of red ladders lead to successively higher levels
Dividend Stocks

Higher Rates Are Back: Can Brookfield Infrastructure Keep Growing Its Payout?

Brookfield Infrastructure's growing cash earnings support its payout, with financing costs setting the pace of the next increase.

Read more »

Business doodle about dividends on chalkboard
Dividend Stocks

2 Canadian Dividend Stocks I’d Buy and Hold for Life

See why Canadian Natural Resources and CN Rail deserve a spot in a buy-and-hold dividend portfolio built to last for…

Read more »

man looks worried about something on his phone
Dividend Stocks

Telus vs. BCE: Which Dividend Looks Better After the Cuts?

Telus and BCE now offer similar starting yields, making payout coverage and recovery demands the more useful comparison.

Read more »

dividends can compound over time
Dividend Stocks

Tamarack Valley Plans a 20% Dividend Hike: Why, and What Investors Should Know

Tamarack Valley plans a 20% dividend boost tied to its $10 billion Headwater merger. See what free cash flow, dividend…

Read more »

A worker wears a hard hat outside a mining operation.
Dividend Stocks

Toromont Stock Jumps 8% as Its Order Backlog Balloons to $2.9 Billion (More Than Double Last Year’s)

Considering its strong third-quarter results, substantial order backlog, healthy growth prospects, and consistent dividend payments, Toromont could be an attractive…

Read more »

shoppers in an indoor mall
Dividend Stocks

What $20,000 in CT REIT Could Pay You Without Selling a Single Unit

CT REIT could turn a $20,000 investment into roughly $93 a month, with rent and payout coverage doing the supporting…

Read more »

Blocks conceptualizing the Registered Retirement Savings Plan
Retirement

RRSP vs TFSA for Retirement? Why Most Canadians Should Be Using Both

Canadians should use both the RRSP and the TFSA in their retirement wealth process. These are the best type of…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Withdrawals in Retirement: A Tax-Free Source That Can Protect Your Benefits

If you hold Fortis (TSX:FTS) stock in a TFSA, you can withdraw the dividends tax-free.

Read more »