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The Crypto That's Outperforming Bitcoin by 501%
Key Points
Solana is one of the fastest blockchain networks, making it popular with developers and users.
It has handily outperformed Bitcoin over the last three years.
Bitcoin and Solana are different types of cryptocurrencies with unique advantages, and you may want to invest in both.
Bitcoin (CRYPTO: BTC) has delivered outstanding returns to investors who have bought it and held on through its ups and downs. Over the last three years, Bitcoin rose by 423% (as of Dec. 21).
You can't complain about those kinds of returns, especially considering the S&P 500 increased by 76% over the same time period. But there's one popular altcoin that outperformed Bitcoin by a whopping 501%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Solana: A high-speed blockchain network
Solana (CRYPTO: SOL) is a blockchain with smart contract capabilities, one of several competitors to Ethereum. Its three-year returns sit at an impressive 924%.
The Solana blockchain launched in 2020, well after Ethereum and Cardano, another competitor. However, it quickly gained investor attention because of its fast and cheap transactions. Solana generally processes between 700 and 1,000 transactions per second (tps), and it's reportedly capable of 65,000 tps. Average transaction fees are just $0.002.
For perspective, Ethereum normally processes 15 to 20 tps, and recent transaction fees are $0.14. Solana's low costs and high speeds have helped it gain popularity among developers as a platform for launching decentralized finance (DeFi) services and cryptocurrency tokens.
This doesn't mean you should ditch Bitcoin for Solana. They're very different types of cryptocurrency, with Bitcoin primarily serving as a store of value. There have also been periods when Bitcoin has outperformed Solana. If you're in the process of building your crypto portfolio, you may want to consider picking up some of both.
Lyle Daly has positions in Bitcoin, Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.