Dogecoin and Solana are two of the largest cryptocurrencies by market cap in the world.
Since President Donald Trump won the presidential election last November, crypto has been in the spotlight. Trump campaigned on making the U.S. the crypto capital of the world, and when he took office in January, his administration got right to work.
Whether through legislation passed by Congress, implementing pro-crypto cabinet members and advisors, or a U.S. Strategic Bitcoin Reserve, the sector has gotten a lift, despite having to navigate economic uncertainty with Trump’s tariffs and the high interest rate environment.
Many investors believe the crypto bull market will likely continue, or that we might even be in a completely new era of crypto acceptance. Looking ahead, which cryptocurrency is more likely to make a millionaire? The meme token Dogecoin (DOGE -1.10%), or Solana (SOL 2.23%)?
Dogecoin: Can the meme token last and maintain relevance?
Dogecoin is a fairly old cryptocurrency, having launched in 2013. Developers created it as a joke, and it became the original meme token, with viral posts of its Shiba Inu mascot and celebrity endorsements carrying the price higher and making it a top-10 cryptocurrency by market cap at roughly $33.6 billion. Dogecoin is special because it’s really the first cryptocurrency that the internet ran with and created a viral community around.
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But from a utility perspective, Dogecoin, and its network, don’t really offer anything unique. Its supply is not finite and actually grows each year; its network still runs on an energy-intensive proof-of-work (PoW) consensus mechanism, and Dogecoin’s blockchain network doesn’t process many transactions per second (TPS).
Now, there has been talk of potential changes to the network, including transitioning over to a proof-of-stake (PoS) consensus mechanism. In proof-of-stake, token holders stake their tokens for the opportunity to get selected to validate transactions, mint new blocks, and earn rewards. Those who stake more tokens have a better chance of getting selected. PoW is energy intensive because it involves running hardware that can solve cryptographic puzzles as quickly as possible.
There’s also been rumors that Dogecoin may build a layer-2 solution that allows transactions to be processed off-chain, which could enable smart contracts and a greater throughput where the network could process more TPS. These kinds of projects, if implemented, could give the network stronger utility and the token more legitimacy.
Solana: A strong technical network
Solana is considered to have one of, if not the strongest technical networks in the crypto sector. Not only does it run on a PoS network, but it also has a proof-of-history (PoH) concept on the network. By assigning timestamps to transactions, PoH removes the time-consuming process of synchronizing transaction times across all computer nodes. This speeds up the process of validating transactions and increases the scalability of the network.
As a result, Solana is currently able to process close to 3,800 TPS, although the potential is much, much greater. During a recent stress test, the network reportedly and briefly processed well over 100,000 TPS, setting a new record. This capability could prove to be a significant disruptor to the payments space and also likely positions Solana well for developers looking to run decentralized applications with smart contract functionality.
Solana was launched with a large supply of 500 million tokens, so it doesn’t exactly have an attractive store of value like Bitcoin. However, the network does have a burning mechanism that permanently eliminates tokens from circulation, so over time, the token could prove to be deflationary, although investors likely aren’t drawn to this aspect of Solana right now.
Which is more likely to be a millionaire maker?
Trying to value cryptocurrencies and make future price target predictions is very difficult when it comes to cryptocurrencies because they don’t generate earnings or cash flows like traditional stocks. Currently, the main way I evaluate cryptocurrencies is by looking at the utility of their networks.
While both Dogecoin and Solana are likely to remain volatile, I would pick Solana over Dogecoin any day of the week. Solana’s network is one of the fastest and most scalable, which gives the network and token tremendous potential, especially as throughput continues to increase. Changes to Dogecoin’s network may help, but I wouldn’t consider anything until those changes actually happen first.