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%.
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.
Before you buy stock in Solana, consider this:
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Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $504,239!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,159,896!*
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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.
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