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

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Emerging Canadian AI Companies With Big Potential

These tech stocks are paving the way to an AI-filled future, but still offer enough growth ahead for a strong…

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Is Constellation Software Stock a Buy, Sell, or Hold for 2025?

CSU stock has long been a strong option for high growth, high value stocks. But are there now too many…

Read more »

rising arrow with flames
Investing

2 Riskier Stocks With High Potential for Canadian Investors in November

Risky stocks such as Well Health Technologies have the potential to provide life-changing long-term returns.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

Canada day banner background design of flag
Investing

Got $500? 5 Top Canadian Stocks to Buy and Hold

These top Canadian stocks have solid fundamentals with potential to outperform the benchmark index by a wide margin.

Read more »

man touches brain to show a good idea
Energy Stocks

1 No-Brainer Energy Stock to Buy With $500 Right Now

Should you buy a cyclical energy stock at its decade-high? Probably not. But read this before you make a decision.

Read more »

Asset Management
Stocks for Beginners

TFSA: 4 Canadian Stocks to Buy and Hold Forever

Thinking about what to buy with the new TFSA contribution space in 2025? These four Canadian stocks are worth holding…

Read more »