SOL - 1 Crypto Coin That Could Grow Faster Than Bitcoin
The stock market is full of opportunities for investors who can find those diamonds in the rough. Investing in technology might continue to be a popular trend for stock market investors in the coming years. The sector boasts several high-quality names trading for attractive valuations today.
The cryptocurrency industry is not one of the favourite industries for risk-averse investors to look for such assets. Moving too far down the pecking order in this speculative asset class opens up room for even more volatile investments. The top cryptocurrencies like Bitcoin and Ethereum might be too expensive for many would-be crypto traders to consider.
However, there might be a cryptocurrency that would qualify as an attractively valued asset with significant upside potential and an attractive price. Today, I will discuss Solana (CRYPTO:SOL) , a cryptocurrency asset that might just outpace the likes of Bitcoin in providing growth.
A crypto with plenty of growth potential
At writing, Bitcoin is down by 9.7% in the last 12 months. Solana is up by a whopping 1,046.3% in the same period, despite a significant drop of almost 50% from its peak on November 6, 2021. If you want to consider a crypto asset comparable to a diamond in the rough that has really started to shine, you could see Solana as the perfect example.
The crypto token has already shown that it is capable of outpacing the growth exhibited by Bitcoin, and it has the potential to provide even greater returns.
With great speed comes great responsibility
Solana offers significant advantages over Bitcoin in many respects. A particular area where it stands out is the validation method used on Solana’s blockchain network. Instead of the time-consuming, expensive, and energy-intensive proof-of-work validation method used to mine Bitcoin, Solana’s blockchain network uses the more efficient, much faster, and cost-effective proof-of-stake method.
Solana boasts one of the fastest transaction speeds among the top 10 cryptocurrencies, and its power consumption is substantially lower than Bitcoin’s. Additionally, Solana’s role in the non-fungible token (NFT) marketplace gives it even more potential for long-term growth .
Ethereum is still the NFT giant by a significant margin. However, Solana’s greater speed and cost-effective transaction times have made it a more attractive platform for NFT creators and investors.
Foolish takeaway
Cryptocurrency assets dipped significantly over the last few months after a strong performance in 2021. However, the last few days of trading have seen a sudden uptick in the broader industry. Investing in Bitcoin seemed expensive even when it was down by a significant margin during the pullback. But a crypto like Solana seems more attractive than ever for growth-seeking investors.
It is still too soon to say that Solana will outgrow Bitcoin’s massive market capitalization any time soon. But the altcoin has every bit of potential to outpace its growth. If you are willing to assume the risk of investing in crypto-based growth, Solana could be a viable investment to consider.
The post 1 Crypto Coin That Could Grow Faster Than Bitcoin appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin and Ethereum.
2022