Are Any of These Ethereum Competitors Buys in 2026?

Ethereum (CRYPTO: ETH) may be down more than 20% in 2026, but so is just about every other Layer-1 blockchain network. Solana (CRYPTO: SOL) is down 27%, Cardano (CRYPTO: ADA) is down 21%, and Avalanche (CRYPTO: AVAX) is down 22%.

That leads to a tough question for crypto investors: Should they continue to put their faith in Ethereum, or should they move their money into one of these top Ethereum competitors and hope for a rebound? Here's a look at a few Ethereum rivals.

Solana

With a market cap of $50 billion, Solana has emerged as the cream of the crop of top Ethereum rivals. While it has never lived up to its billing as a potential "Ethereum killer," it continues to display enormous promise. It's rapidly evolving from a blockchain best known for meme coins into something much more.

Most importantly, Solana has displayed newfound strength in decentralized finance (DeFi). Already, Solana has surpassed Ethereum in terms of monthly trading volume on its decentralized exchanges. And it now ranks second only to Ethereum in terms of Total Value Locked (TVL), which is arguably the most important metric for measuring overall DeFi strength.

Image source: Getty Images.

Solana is also fast supplanting Ethereum as the go-to blockchain for new stablecoin launches. In October, for example, Western Union launched a new Solana-based dollar stablecoin that will make it easier for its customers to send money internationally.

At the same time, Solana's blockchain ecosystem is showing signs of rapid growth. According to a report last October by 21Shares, Solana's blockchain ecosystem generated nearly $3 billion in revenue over the most recent 12-month period.

The only problem, of course, is that Solana's price hasn't kept up with its rapid growth. At a current price of $89, Solana trades at a remarkable 70% discount to its all-time high of $294 in January 2025. From my perspective, that makes Solana wildly undervalued. What has really changed over the past 12 months?

What about the other Ethereum competitors?

While both Cardano and Avalanche have shown promise over the past five years, it's time for investors to forget about them. Avalanche is now down a head-spinning 94% from its all-time high in 2021. And it's not much better for Cardano, which is down 92% from its all-time high in 2021.

From my perspective, what was once a crowded field has narrowed down to just two main competitors: Ethereum and Solana. It's the longtime market leader versus the upstart.

If forced to pick between the two, my current lean is toward Solana. It's simply growing faster than Ethereum right now. If Ethereum were the one Layer-1 blockchain network you needed to have in your portfolio over the past decade, Solana may be the one Layer-1 blockchain network you need to have in your portfolio over the next decade.

Dominic Basulto has positions in Cardano, Ethereum, and Solana. The Motley Fool has positions in and recommends Avalanche, Ethereum, and Solana. The Motley Fool has a disclosure policy.