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.

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 Investing

Hand Protecting Senior Couple
Retirement

These 2 Dividend ETFs Are a Retiree’s Best Friend

These two dividend ETFs could provide retirees with a diversified and stable income stream, while providing some price appreciation.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

Shopify: A Must-Have Growth Stock for Your TFSA Now (and the Next 10 Years)

Shopify (TSX:SHOP) stock isn't just a top growth company, it's a titan worth owning in your decades-long TFSA fund.

Read more »

Investing

Have $1,000? Here Are the Best Stocks to Buy Right Now

These TSX stocks have solid growth potential and will likely deliver above-average returns in the long term.

Read more »

cloud computing
Tech Stocks

Best Stock to Buy Right Now: Manulife vs CIBC

Want the best stocks? These two are certainly the best options. But which is the better buy?

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Earn $2,000 in Passive Income in 2025 With Less Than $51,000 in Savings

You can invest in Canadian high yield stocks via the Vanguard FTSE Canadian High Yield Dividend ETF (TSX:VDY).

Read more »

Asset Management
Investing

Where Will Restaurant Brands International Stock Be in 1/3/5 Years?

Let's dive into where Restaurant Brands (TSX:QSR) could be headed over the near to medium term, shall we?

Read more »

profit rises over time
Tech Stocks

4 Reasons to Buy Constellation Software Stock Like There’s No Tomorrow

Constellation Software stock continued its climb upwards after recent earnings, and this only adds to its appeal.

Read more »

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Is Enbridge Stock a Good Buy?

Enbridge provides a 6.5% dividend yield right now.

Read more »