It’s less than a month into the new year, and a number of top altcoins are starting to fall off the market benchmark. Bitcoin(Crypto: BTC). While Bitcoin is up 15% for the year, other cryptocurrencies are up 30%, 40% and even 50%.
It’s one cryptocurrency that’s on my radar right now. Solana(Crypto: SOL)It jumped more than 50% between January 12 and January 17. There are several reasons Solana In the year By 2025, and all are preparing this cryptocurrency for rapid growth in the coming years.
First and foremost, Solana has emerged as the premier blockchain challenger. Ethereum(Crypto: ETH). Solana is a smart contract blockchain platform, and that means it can do anything that Ethereum can do. It also means that Solana has a rich blockchain ecosystem in areas ranging from decentralized finance (DeFi) to blockchain gaming.
But here’s the thing: Solana is faster, cheaper, and easier to use than Ethereum. It’s something Cathy Wood of Arch Invest pointed out a year ago when she described Solana’s potential to take market share away from Ethereum. Fast speed and low costs are key to winning new customers and attracting new users. For good reason, Solana has been tagged as a possible Ethereum killer.
There’s another big factor in Solana’s favor: the high probability that Solana’s new position in exchange-traded funds (ETFs) will arrive by 2025. Place Bitcoin ETFs Last January and tens of billions of dollars poured into Bitcoin, driving up its value. All told, more than $100 billion has now flowed into the space’s Bitcoin ETFs.
But that doesn’t mean $100 billion is going to flow into Solana. After all, Bitcoin has a completely different size and scale than Solana. But JPMorgan recently suggested that as much as $6 billion of new investor money could flow into Solana ETFs.
Solana has something that another top Layer-1 blockchain network lacks: a mobile crypto strategy. Solana launched the crypto-friendly Saga smartphone in 2023 and is following up with a low-cost tracker smartphone in 2025. Some people want to carry their cryptocurrencies with them wherever they go, and mobile is the easiest way to do that. Tool optimized for crypto.
Image source: Getty Images
According to Solana’s founders, a crypto-optimized mobile device is the easiest way to onboard new users. Once you purchase a new Solana mobile device, you are more likely to use the Solana blockchain and connect to various applications within the Solana blockchain ecosystem.
Solana has emerged as the preferred platform for launching, buying and selling meme coins. Thousands of new meme coins are being created every day, and Solana is the easiest, lowest cost, and most efficient blockchain platform to do so.
Consider the new meme coin launched the weekend before President Donald Trump’s inauguration. Meme Coin was launched on the Solana blockchain and immediately grew to a value of $10 billion. Solana price surged by 12% on the news of the meme coin launch.
While I do not support the idea of buying meme coins as part of a long-term investment strategy, I do think that buying Solana is a smart way to benefit from the meme coin trend. That’s because you need to buy Solana Tokens to buy Solana Meme Coins (just like you need dollars to buy dollar-denominated assets).
Therefore, any increase in Memcoin trading will increase Solana’s overall demand. That’s why Solana’s price went up after the Trump meme coin started. The total transaction volume on the Solana blockchain has more than doubled, the overall transaction activity has exploded.
There are many different ways to think about how high Solana can be in the long run. If you buy into the idea that Solana is the next Ethereum, one trick is to simply compare the market caps of Solana and Ethereum, and make some basic assumptions about how quickly Solana can close the gap.
Currently, Ethereum has a market cap of $400 billion, while Solana has a market cap of $125 billion. So, if Solana eventually closes the gap with Ethereum, we’re talking a potential gain of $275 billion in market cap. Based on Solana’s current price of around $250, it suggests a price of $550.
Mind you: Solana has a lot going for it to hit that target. It should continue to take market share from Ethereum. New position ETFs require regulatory approval. And it should continue to be implemented with a mobile crypto strategy. That’s a lot to ask. But if all that happens, Solana — and not Bitcoin — is the cryptocurrency you should buy right now.
Before buying stock in Solana, consider this:
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JPMorgan Chase is an advertising partner of Motley Fool Money. Dominic Basulto It has positions in Bitcoin, Ethereum and Solana. He has a spot in the Motley Fool and recommends Bitcoin, Ethereum, JPMorgan Chase, and Solana. The Motley Fool has Disclosure Policy.
