Should You Forget Ethereum and Buy This Cryptocurrency Instead?
Key Points
Over the past five years, Solana is up 144%, while Ethereum is down 5%.
Solana is a faster, cheaper blockchain to use than Ethereum, giving it an edge in areas such as decentralized finance.
Solana can be extremely volatile, making it a risky high-upside play.
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There's no denying that Ethereum (CRYPTO: ETH) has been one of the top-performing cryptocurrencies of the past decade. Since its launch in July 2015, it's up a staggering 68,700%.
But here's the thing: After more than a decade as the market leader, Ethereum has plenty of upstart rivals, including some that are now growing much faster. The one on my radar right now is Solana (CRYPTO: SOL).
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Solana vs. Ethereum price performance
The chart below might be the best guide to understanding why Solana is likely a better buy than Ethereum right now. It compares the performance of Solana and Ethereum over the past five years. During that time period, Solana is up 144%. In comparison, Ethereum is down 5%.
Ethereum/U.S. Dollar chart by TradingView.
If you buy into the argument that Ethereum achieved many of its record-setting gains in its early years, when it had little or no competition, this makes sense. As soon as new Layer 1 blockchain networks like Solana emerged, Ethereum began to lose some of its upward momentum.
Admittedly, the performance gap between Solana and Ethereum has been narrowing over the past 12 months. But for long stretches of time over the past five years, Solana was clearly outpacing Ethereum by a wide margin.
Solana's advantages
Solana is faster and cheaper to use than Ethereum, and that has been a big factor in its success. In November 2023, Cathie Wood of Ark Invest highlighted the disruptive potential of Solana. If the Solana blockchain can do everything that the Ethereum blockchain can do, why wouldn't developers and users migrate over to Solana, if it's faster and cheaper to use?
Image source: Getty Images.
Indeed, that appears to be what's happening. Take decentralized finance (DeFi), for example. Solana has started to take a bite out of Ethereum's market share. In terms of 24-hour trading volume on decentralized exchanges, Solana passed Ethereum in 2024. Now Solana is coming for stablecoins -- an area where Ethereum has always been the market leader.
From my perspective, this same phenomenon will occur across every niche of the blockchain and crypto world, where faster speeds and lower costs are extraordinarily important. That's why Solana could grow much faster than Ethereum for the foreseeable future.
So what could possibly go wrong?
Solana might offer turbo-charged returns, but it also offers turbo-charged risks. During the crypto winter of 2022, Solana's price collapsed by 94% amid concerns about its ties to Sam Bankman-Fried and the FTX cryptocurrency exchange's collapse. Then, in 2025, Solana became embroiled in a major controversy involving meme coins, and its price tanked again.
So, if you're thinking about investing in Solana, be sure to do your due diligence. There will be plenty of volatility along the way. If that's not for you, then Ethereum remains the "safer" pick. But if you're willing to embrace crypto's volatility to boost future returns, it might be worth taking a closer look at Solana.
Should you buy stock in Solana right now?
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Dominic Basulto has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum and Solana. The Motley Fool has a disclosure policy.
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