Looking for 15,000% Gains? Check Out This Cryptocurrency

Here’s why Solana may be one of the best long-term cryptocurrencies to buy and hold right now, despite its rapid rise of late.

stocks rising

Image source: Getty Images

The cryptocurrency space has gained the attention of many investors around the globe. That’s certainly safe to say. And for investors in Solana (CRYPTO:SOL), this has been quite the year.

This cryptocurrency is currently up more than 15,000% on a year-to-date basis. Yup, that’s right. It’s been better than a 150-bagger just this year alone.

Can Solana repeat this kind of performance? We’ll see. Valuations are rather volatile in this space. However, all indications are that this is a cryptocurrency with some serious momentum right now.

Let’s dive into why investors may want to keep this cryptocurrency on their watch list right now.

Solana’s backers provide serious credibility

We’ve all seen the risks of investing in cryptocurrencies play out. Investors may be familiar with the rug pull associated with the Squid Game crypto. Such permanent investment losses are a reality in this space, and investors need to invest with extreme caution.

Accordingly, finding crypto projects backed by notable names is a good place to start. Solana is one such network.

This crypto project has been invested in or backed by the likes of CMS Holdings, FTX’s Alameda Research, and other giants. This cryptocurrency can also be found in the portfolios of several famous investors such as Sino Capital, Multicoin Capital, and others.

The backing of these significant investors along with an “Ethereum-killer” narrative is a primary driver for the exponential growth we’ve seen with SOL this year. However, there are other factors investors should consider as well.

Other factors making contributions to Solana’s rapid rise

Investors use cryptocurrencies and their underlying blockchain technologies for various reasons. One such reason is the search for decentralized applications. In this regard, the Solana blockchain provides a world of opportunity in the decentralized finance space. That’s an exciting hyper-growth area many investors are focused on right now.

For those simply looking to transfer money or buy something online, Solana also provides some real utility. This network is fast — lightning fast.

Currently, Solana can process around 50,000 transactions per second, which is orders of magnitude higher than other leading blockchain networks. Thus, the Solana network has been able to maintain rock-bottom transaction fees (often a fraction of a cent), making this the go-to place for many investors to buy NFTs, for example.

Bottom line

Solana is fast; it’s agile; and it’s a blockchain protocol that’s got a fast-growing ecosystem of decentralized applications being built upon it. This is a cryptocurrency with about as many growth drivers as there are right now in the crypto world.

Accordingly, it’s unsurprising to see how far and how fast SOL has run. Can this continue? We’ll see. However, for now, this is a token worth paying attention to in this momentum-driven state.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns SOL.

More on Cryptocurrency

cryptocurrency, crypto, blockcahin

HIVE Blockchain Stock Fell 18% In October – Is It Time To Buy? 

Hive Blockchain (TSXV:HIVE) stock is down with the crypto market but ready for a BTC rebound.

Read more »

crypto, chart, stocks

2 Top Cryptocurrencies to Buy in October 2022

Ethereum and Solana are two of the most popular cryptocurrencies in the world that are well poised to deliver substantial…

Read more »

Hand arranging wood block stacking as step stair with arrow up.

2 Cryptocurrencies to Buy for Potential Recovery

The largest and most liquid cryptocurrencies may not always be the first to recover, and you may have to go…

Read more »

Senior couple at the lake having a picnic
Tech Stocks

3 TSX Stocks That Are Great Long-Term Picks

October is a ripe time to buy growth stocks for wealth creation. Use the market downturn to tap the recovery…

Read more »

cryptocurrency, crypto, blockchain
Tech Stocks

Sinking Crypto Stock: Is Hut 8 (TSX:HUT) Worth Buying at $2.30?

A prominent crypto stock trading at an absurdly cheap price, but you must have a high-risk appetite to consider buying…

Read more »

sad concerned deep in thought

Is Coinbase Stock a Good Bet for Cryptocurrency Investors?

Coinbase stock is down 80% from all-time highs, but the U.S.-based cryptocurrency exchange is still one of the largest platforms…

Read more »

Big Bitcoin logo.

Will Bitcoin Ever Shift to a Proof-of-Stake Model?

Following Ethereum's (CRYPTO:ETH) Merge, will Bitcoin (CRYPTO:BTC) adopt a proof-of-stake consensus mechanism or stand pat?

Read more »

cryptocurrency, crypto, blockchain

HIVE Blockchain (TSXV:HIVE) Stock: Is it Cheap or a Falling Knife?

HIVE Blockchain Technologies Ltd. (TSXV:HIVE)(NASDAQ:HIVE) is a crypto miner that looks undervalued in the face of major volatility.

Read more »