Prediction: Solana Will Outperform Bitcoin Over the Next 3 Years

Solana outperformed Bitcoin over the last three years and looks set to do so again.

Smaller cryptocurrencies carry more risk, but also have greater growth potential.

When cryptocurrencies first really took off in 2020 and 2021, the hunt was on for the next cryptocurrency to explode . The frenzy faded, and only a few well-known altcoins have outperformed Bitcoin (CRYPTO: BTC) in the past three years. Solana (CRYPTO: SOL) is one of them, increasing by over 250% while Bitcoin has gained almost 140%.

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No cryptocurrency can be categorized as a safe investment, but Bitcoin, by far the largest, is likely the safest. This crypto bellwether has attracted a large share of institutional crypto investment, making it less volatile, as the chart shows. The flip side of that relative safety is that Bitcoin doesn't have the same growth potential as smaller cryptos.

Lesser-known cryptocurrencies can surge dramatically in a short time. The difficulty is that those surges are often fueled by unpredictable speculation. Plus, less-established cryptos are rarely able to sustain their gains or recover after the inevitable slumps.

This tendency brings me back to Solana, which has repeatedly erased losses and keeps getting stronger.

Many cryptocurrencies are under pressure right now. As of June 10, Bitcoin has fallen 10% to $61,658 in the past three months, while Solana dropped 24% to $65. Inflation and geopolitical uncertainty have both weighed on prices, alongside other factors. When inflation is high, the Federal Reserve is more likely to increase interest rates, which makes riskier assets like crypto less attractive.