3 Reasons Solana Could Be a 10-Bagger Opportunity!

Solana (CRYPTO:SOL) could be a multi-bagger.

| More on:

Solana (CRYPTO:SOL) is quickly becoming one of the most popular blockchain networks in the industry. Last year, the token saw its value surge 5,085%. Since the start of this year, it’s down 16.8%. This minor bear market creates an opportunity for investors willing to make a long-term contrarian bet. 

Here are three reasons why Solana could be a massive money maker for early investors in the years ahead. 

Steady traction

The Solana network offers the same features as the Ethereum (CRYPTO:ETH) network. However, the network is based on a different mechanism, which means transactions are considerably faster and much cheaper. That’s helped attract more users and developers to the platform over the past year. 

In 2021, the number of active Solana addresses more than doubled. Meanwhile, the network’s native wallet Phantom added more than a million users. Noteworthy investors such as Mark Cuban and Sam Bankman-Fried have bet on the cryptocurrency.

Solana’s growing popularity and usage could unlock network effects. This means it has a legitimate shot at disrupting Ethereum. 

Expanding ecosystem

Ethereum continues to struggle with slow transactions and high fees, while other decentralized computing platforms have failed to scale. That puts Solana in an ideal position to gain traction. Developers have migrated their applications to SOL in recent months. The ecosystem has exploded with several new Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi) products, and Decentralized Apps (dApps). 

The network now hosts popular dApps like music streaming platform Audius, DeFi dashboard Sonar and trading platform Serum. This rapidly expanding ecosystem makes the network more useful and, thus, more valuable as an investment. 

Total addressable market

Considering all the recent traction, it’s clear that Solana’s total addressable market is immense. It could achieve what Ethereum set out to achieve — becoming the decentralized layer of the global internet. 

That’s a lucrative opportunity. The global DeFi market is currently worth $186 billion, while NFTs are expected to be a trillion-dollar asset class in the near future. Ethereum itself is worth $483 billion, while Solana is worth $56.11 billion. 

In other words, Solana could surge 10-fold and still have plenty of room to expand. It’s a potential multi-bagger. 

Bottom line

Solana’s recent plunge creates an opportunity for investors. This is now the fifth-largest cryptocurrency on the market, but it has a real shot at disrupting the market leader Ethereum. That means there’s a massive runway for growth ahead of it.

Solana’s steady traction with users and developers indicates that the network’s benefits are being realized. As the ecosystem expands and the number of users explodes, Solana could unlock network effects that have helped other digital platforms succeed in the past. Growth investors should keep a close eye on this asset. 

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 Vishesh Raisinghani owns Ethereum. The Motley Fool owns and recommends Ethereum.

More on Investing

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Bank Stocks

Best Stock to Buy Right Now: TD Bank or Manulife Financial?

Manulife continues to see momentum in its business and stock price, while TD Bank stock remains down and out.

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

Canadian Dollars bills
Metals and Mining Stocks

2 Cheap Canadian Stocks Under $20 to Buy This November

Cheap TSX stocks such as Endeavour Silver are trading at an attractive valuation in November 2024.

Read more »

happy woman throws cash
Tech Stocks

3 Growth Stocks That Could Be Long-Term Wealth Creators

These three growth stocks aim to grow their financials at a higher rate than the industry average, thus delivering superior…

Read more »

how to save money
Bank Stocks

This 5.9% Dividend Stock Pays Cash Every Month

First National Financial (TSX:FN) has a 5.9% yielding dividend that is paid out monthly.

Read more »

gift is bigger than the other
Investing

The Best Canadian Stocks to Buy With $5,000

These Canadian companies have solid growth prospects and the ability to deliver profitable growth even at a large scale.

Read more »