Since January 2023, Bitcoin (BTC 1.87%) is up a mind-blowing 533%. That includes triple-digit returns in 2024, when Bitcoin was the best-performing asset in the world, and it wasn't even close.
That's impressive, but did you know that a number of top cryptocurrencies have actually outperformed Bitcoin over the past two years? The one at the top of my list is Solana (SOL 0.52%), which is up an astounding 2,315% over that same time period. So is now the time to forget about Bitcoin and buy Solana instead?
Future growth prospects for Solana
Solana is more than just a cryptocurrency -- it is also a blockchain ecosystem. In order to value Solana, then, you need to peek under the hood to see where the real growth is occurring. Solana has always had a core strength in areas like non-fungible tokens (NFTs), blockchain gaming, and Web3. But now a lot of its growth is occurring within the world of decentralized finance (DeFi), where Solana is rapidly taking market share away from Ethereum (ETH 2.50%), the entrenched incumbent.
And that's where things get really interesting, because Solana has often been mentioned as a potential "Ethereum killer." Quite simply, Solana can do everything Ethereum can do, and it is also cheaper and faster to use. So it only makes sense that users and developers are going to migrate to Solana. For good reason, Cathie Wood of Ark Invest has suggested that Solana might eventually topple Ethereum as the market leader in the Layer 1 blockchain space.
Bitcoin / U.S. dollar chart by TradingView
In 2025, it finally looks like Solana is following through on its full potential, and that could be a game changer for crypto investors. Just look at this chart. It shows how Solana is absolutely trouncing not only Bitcoin, but also Ethereum, over the past two years. Sure, Solana might not have the historical track record or pedigree of these two cryptocurrencies, but it has what every investor craves: unparalleled future growth prospects.
What is the true value of Solana?
There are a number of different ways to figure out a potential price target for Solana. If you buy into the argument that Solana is poised to topple Ethereum as the market leader, then one quick short-hand way to figure out how much Solana should be worth is to add up the current market caps of both, and then assume that, at some point, the two blockchain rivals are going to reach parity.
So, for example, the combined market caps of the two right now is close to $500 billion ($380 billion for Ethereum, $120 billion for Solana). If you assume that Ethereum is going to cede market share to Solana, and Solana is going to gain at Ethereum's expense, then a nice round valuation target for Solana would be $250 billion. That means Solana has the potential to double in price, from its current level of $250 to $500.
Image source: Getty Images.
But that may not be giving Solana enough credit, because it doesn't take into account all of the new growth initiatives currently underway within its blockchain ecosystem, including an exciting new mobile crypto initiative. And Solana now appears to be making a move in artificial intelligence, with recent news that a top platform for creating AI agents is now moving to Solana. That platform is Virtuals Protocol (VIRTUAL +2.72%), which just so happened to be the top-performing cryptocurrency of 2024.
CRYPTO: SOL
Key Data Points
Still not convinced that Solana is set up for some blistering growth ahead? Check out the projections of New York-based investment firm VanEck, which concluded in October 2023 that Solana might skyrocket to a price of $3,200 by the year 2030 as it continues to wrest market share away from Ethereum. At the time, that price target seemed impossibly high. But that was before Solana skyrocketed in price by more than 2,000%!
The one Solana catalyst to watch in 2025
There are several Solana catalysts to keep a close eye on in 2025, but I think the one that will have the greatest impact is the approval of new spot Solana ETFs. Given all the pro-crypto optimism surrounding the new Trump administration, SEC approval might be coming within months. A spot Solana ETF already trades in Brazil, so it's easy to see how one could be coming to the U.S. soon.
If that happens, the price of Solana could soar. According to JPMorgan Chase, as much as $6 billion could flow into Solana. You would no longer need to use a cryptocurrency trading platform to buy Solana -- you would be able to buy it as easily as you buy a tech stock, and that's likely to push Solana steadily higher for the foreseeable future. If everything goes according to plan, Solana will increase in value so much that you'll forget all about Bitcoin.
