Got $2,000? These 2 Cryptocurrencies Could Crush Bitcoin's Returns in 2026

Bitcoin (CRYPTO: BTC) is the king of cryptocurrencies, but that does not guarantee it will outperform other crypto assets, especially not in a relatively short time, like a year and a half or so. As smart a purchase as it is, it simply doesn't have that many catalysts that will drive major growth immediately.

For anyone looking to place a small investment like $2,000, it's probably a decent idea to look for a higher-growth option, as long as their portfolios are already diversified with safer investments.

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So let's look at a pair of coins that could crush Bitcoin's returns in the near term. But be aware that they're also a bit riskier than Bitcoin is.

Why XRP could outperform

Provided that its value isn't eroded by uncertainty surrounding the possibility or implementation of new tariffs in the U.S., XRP (CRYPTO: XRP) is a compelling pick for one-upping Bitcoin between now and the end of 2026. The key driver of XRP's value is its utility, which is increasing over time as a result of development efforts pursued by the coin's issuer, a company called Ripple.

The core feature set of XRP makes it a cheap and effective way for financial institutions to transfer money to one another. They need to buy more XRP to transfer larger volumes of that money. And, if the development road map is implemented as planned, the chain will also offer them the ability to track and trade real-world assets like commodities and real estate.

The endgame could be a scenario in which banks hold a lot of their assets on the chain, ranging from stablecoins to stocks, all while using the chain's main coin, XRP, to dodge fees for currency exchange and international money transfers as they transact.

Compared to Bitcoin, XRP is more likely to rise faster simply because the new features in development will make the coin more valuable to its target users. That will cause more new users to come on board, requiring them to buy XRP, and it'll also increase the quantities of XRP that existing users need to retain to get the utility they want from the chain.

Bitcoin, despite being in active development, is not trying to deepen a feature set to attract more investment from a particular group, and so it won't.

Solana has a shot to outperform, too

Solana (CRYPTO: SOL) could outperform Bitcoin because it's the chain that's the cryptocurrency sector's emerging leader in decentralized finance (DeFi), artificial intelligence (AI) agents, and infrastructure on the blockchain -- and, notoriously, the home of the meme coin casino.

In one sense, its chances of one-upping Bitcoin are similar to XRP's in that its technology development is going at a faster pace and creating a better foundation for its ecosystem to flourish.

But for Solana, it's the ecosystem's strength rather than the underlying technology upgrades alone that could make the difference. As more capital flows into the chain looking to invest in the ecosystem, it on average increases the value of the coin as well.

And, as more projects produce revenue or offer services that are in demand, it creates more volume on the chain, requiring a larger group of investors to buy more of the coin to accomplish what they want. Assuming that at least some of the projects are successful, the chain then gains a new locus of value generation, thereby attracting even more capital via social proof.

Bitcoin doesn't offer any of the same draws, since its ecosystem is very limited by design. Likewise, there are not a large number of investors flocking to Bitcoin in hopes of investing in a project there.

So if investors do want a higher return, they'll need to go to a chain like Solana, which is the core reason it's more likely to grow faster than Bitcoin: It's more than just a store of value or a medium of exchange, it's a place with opportunities.

The risks of investing in Solana itself are significantly higher than the risks of investing in Bitcoin. If the ecosystem is largely comprised of projects in speculative segments that don't ever gain traction -- like, for example, crypto for music or crypto for sports betting -- then as investors give up and move their capital elsewhere, it could cause serious damage to the coin's price.

But that's a risk that investors will need to accept if they want to have a shot at outpacing Bitcoin, so it shouldn't dissuade you from making a purchase.

Should you invest $1,000 in XRP right now?

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Alex Carchidi has positions in Bitcoin and Solana. The Motley Fool has positions in and recommends Bitcoin, Solana, and XRP. The Motley Fool has a disclosure policy.