Is Solana the next Bitcoin?

There can never be a similar cryptocurrency Bitcoin (BTC -1.15%). Since its creation back in 2013, Bitcoin has returned an incredible 22,279.89%. And it may not be done yet, with some analysts predicting that Bitcoin could eventually hit $1 million by 2030. That would be a more than 40-fold gain from its current price of $24,000.

With that said, Solana (SUN -2.29%) has the potential to become the next Bitcoin. Since its public launch in 2020, the token has risen an incredible 3,260%. In 2021, Solana was one of the hottest cryptocurrencies of the year. But will it ever become an iconic cryptocurrency found in almost every investor’s crypto portfolio, just like Bitcoin?

What is the unbeatable value proposition?

Just like any good investment, Solana needs a clear value proposition to attract as many investors as possible. Right now, the investment thesis around Solana is that it is a cheaper, faster and better alternative Ethereum (ETH -0.67%), which is the #2 crypto in the world by market capitalization. Solana is a pure proof-of-stake blockchain capable of processing over 65.00 transactions per second with almost zero fees, while Ethereum can only process around 15 transactions per second with high transaction fees.

Image source: Getty Images.

For that reason, users and developers have begun to coalesce around the Solana ecosystem. It’s just cheaper and more efficient to do just about anything on Solana than it is on Ethereum. That’s why media analysts have called Solana an “Ethereum killer.” Even after Ethereum completes its long-awaited merger and attempts to adopt a proof-of-stake system, Solana will still have a superior technology platform to Ethereum.

But for Solana to become the next Bitcoin, it will need an even stronger value proposition. Bitcoin, for example, is “digital gold”. This concept is so easy to understand that it has motivated even the youngest crypto investors to buy and HODL (crypto lingo for “hold”) for the long term. It has been said that Ethereum is “digital oil.” This is also a remarkably simple and effective way to describe why Ethereum is so important to the crypto world. So what is Solana? Here’s an idea: Solana is “digital sunshine.”

Where are the Solana supporters?

Another characteristic of Bitcoin is the presence of a cult-like following. Every time the token falls, fans urge Bitcoin supporters to “buy the dip.” Whenever people ask them where the price of Bitcoin is going, they confidently answer “to the moon.” This kind of incredible optimism about the future is something that Solana will need to capture and retain if they ever hope to become the next Bitcoin, because that’s what will help it bounce back from difficult market conditions. Just as there are Bitcoin Maximalists (people who believe Bitcoin is the end-all and be-all of crypto) and Ethereum Maximalists, there must also be Solana Maximalists.

And there are already signs that these Solana super-supporters are showing up. In 2021, for example, Solana supporters tried to label the entire summer as “Solana summer”. Or take Solana’s recent launch of an in-reality (IRL) retail experience called Solana Spaces in downtown New York City. In many ways, Solana Spaces looks and feels like one apple Big, and it’s a first for the blockchain world. So if Solana ever becomes a crypto brand on par with a tech brand like Apple, watch out.

What is the killer app?

Finally, to become the next Bitcoin, Solana must develop a “killer app” that will set it apart from all other blockchain projects. In the tech world, a killer app is the one product or service that convinces users, developers, and tech entrepreneurs to embrace a particular company. Right now, the most likely choice for a Solana killer app involves non-fungible tokens (NFTs), or digital representations of ownership of art, videos and other media. Since mid-April, Solana NFTs have been a hot topic of conversation. That’s when the most popular NFT marketplace, OpenSea, started listing Solana NFTs. But the killer app could also be a new game, a new metaverse creation, or a new decentralized finance (DeFi) offering.

Move over, Bitcoin – here comes Solana

Clearly, a lot has to go right for Solana to become the next Bitcoin. But based on what has already gone right for Solana over the past two years, there is reason to be optimistic about the future.