Bitcoin (BTC 0.38%) accounts for almost 60% of the total value of the crypto market and is, in some ways, the acceptable face of crypto. It has attracted significantly more institutional investment and, after regulatory changes last year, may also increasingly find its way into people's 401(k)s.
But it faces some serious challenges. For example, some argue it can act as a form of digital gold, a safe asset that hedges against economic turmoil and inflation. However, this doesn't really hold water when you consider Bitcoin's volatility and high correlation with tech stocks. Plus, it still consumes huge amounts of energy, and Bitcoin miners are starting to harness their machines for profitable artificial intelligence (AI) data centers.
So, is it time to focus on less established cryptos like Solana (SOL 0.51%)? That depends on what you want from your crypto investments.
Image source: Getty Images.
Where Solana shines
No longer a newcomer, Solana combines the speed and low costs of third-generation cryptos with the resilience of almost six years in the game. What makes Solana much more attractive than Bitcoin as we enter the next wave of crypto adoption is that it's a programmable cryptocurrency. Its smart-contract capacities mean that other projects, including stablecoins, can be built on its ecosystem.
It isn't yet clear how the stablecoin market will evolve, particularly whether companies will use public blockchains like Solana and Ethereum (ETH 0.14%) or build their own private ones. Right now, about 4.5% of the stablecoins in circulation are issued on Solana, per rwa.xyz. Its total value locked (TVL) -- the amount of on-chain funds -- is $8.4 billion, according to DeFiLlama.
Citigroup (C 3.34%) predicts the stablecoin market could reach as much as $4 trillion by 2030 in a bull case. If Solana continues to hold the same share, that means its TVL could increase to $180 billion -- up more than 2,000% in a matter of years. That's important because there's often a close correlation between TVL and cryptocurrency prices. It's lot of ifs and maybes, but that potential use case shows Solana could have a lot of room to grow.
Solana is trading at about $130 as I write this (Jan. 21). It's just over a year since it set a new all-time high of $294.33 during a meme coin frenzy. While it is a significant drop during the past year, it also demonstrates Solana has gas in the tank. Several altcoins peaked in 2021 and failed to reclaim their glory days in last year's rally.
CRYPTO: SOL
Key Data Points
Choosing between Bitcoin and Solana
Bitcoin and Solana will suit different types of investors. For some people, investing in cryptocurrency is already risky enough without venturing into altcoins. Others are willing to take on more risk for the potential of higher returns.
Solana, which has a smaller market cap and a shorter track record than Bitcoin, also carries more risk -- particularly as when it first launched, it had a reputation for technical hiccoughs. That's something its developers have worked hard to improve -- its last outage was February 2024. Still, some cryptos boast no blackouts, ever.
If the stablecoin market surges, that could be good for Solana. Less so for Bitcoin, as stablecoins may eat into its role as, say, a currency in emerging markets. Another advantage Solana has over Bitcoin is that it pays staking yield. Unlike Bitcoin, you can lock up your coins to earn steady returns, contributing to network security in the process.
Bitcoin reached several all-time highs in 2025 and is currently down about 13% during the past year. It is a better choice for investors who are new to cryptocurrency and want to diversify their portfolios. It isn't as volatile as other digital assets and, with more than $120 billion invested in spot Bitcoin exchange-traded funds (ETFs), it has unparalleled institutional support.
Right now, Bitcoin is the unquestionable leader of the cryptocurrency market, which is reflected in its huge $1.8 trillion market cap. In addition to institutional and corporate adoption, several governments have included it in their strategic reserves. Ark Invest's recently published Big Ideas report predicts Bitcoin could reach over $760,000 by 2030.
CRYPTO: BTC
Key Data Points
Consider your risk tolerance
Bitcoin and Solana both have potential in different ways, and it isn't really a question of forgetting one and opting for the other. Rather, think about what aspects of crypto you want to get exposure to and how much risk you're comfortable with. That way you can develop a clear long-term investment thesis before you act.
Whether you add Bitcoin, Solana, or both to your portfolio, bear in mind that cryptocurrencies are relatively untested assets. There's a lot we don't know about how the next chapter might unfold, particularly in terms of regulation. As such, it's important to make sure crypto only makes up a small percentage of your wider investments.
