Given that Solana, like most crypto projects, is fairly new, it is almost impossible to accurately predict or forecast the price. However, one can draw insights from the project’s outlook and technical charts to make predictions of likely scenarios. This is not to be construed as investment advice but only used for informational purposes.
Here’s what we’ll cover:
- What is Solana?
- A Major Tipping Point in 2021
- Solana price predictions for 2021.
- Solana price forecast for 2022
- Solana price outlook for 2023
- Solana price prediction for 2024
- Solana price prediction for 2025
What is Solana?
Solana was created in late 2017 by Anatoly Yakovenko. He published a whitepaper draft containing a new timekeeping technique for distributed systems called Proof of History (PoH).
Blockchains like Bitcoin and Ethereum have scalability limitations because of the time required to reach a consensus on the order of transactions. Solana combines Proof-of-Stake (PoS) with, a novel consensus mechanism called proof-of-history (PoH), allowing validators on the network to reach a consensus-based on a decentralized source of time.
Using this approach, Solana claims to have become the “fastest programmable blockchain,” capable of handling over 50,000 transactions per second and for incredibly low fees.
A Major Tipping Point in 2021
It is hard to be in the crypto space and not notice that Solana has received a lot of attention lately. The project has received a lot of attention lately, and its native token, SOL, hit a new all-time high(ATH).
Solana’s growth can largely be attributed to the growing number of decentralized finance (DeFi) apps launching on the network. The total value of locked assets is now well over $2 billion, and more projects are still in the pipeline after receiving grants from a Solana Foundation-backed hackathon earlier this year.
The launch saw the total trading volume reach almost 96,000 SOL which is estimated at over $5.9 million as of that time. A collection of 10,000 unique pictures of cartoon apes sold out in barely eight minutes.
Another important development for the coin is news suggesting that a leading crypto fund management company, Grayscale, is considering offering SOL to customers via a Trust fund. Although SOL isn’t the only asset under consideration, its growing popularity makes it a prime candidate.
Solana Price Prediction For 2021
Currently, Solana is trading at $106 having hit an all-time high of around $106.9 a day earlier. The SOL/USD pair had been on a rather slow surge before the announcement of the launch of the Degenerate Ape Academy, recovering alongside the rest of the crypto market. Since then, though, Solana has been in a league of its own.
On the weekly chart, the coin has recorded gains for six consecutive weeks and looks on track for a seventh. The gains started with a 5% increase in the first week of the price increase. The next week was bigger as the coin increased by 20%. After a 10% gain in the third week, the coin enjoyed an average of 30% increase throughout the next three weeks.
Recent prices show that when the SOL/USD pair the bears will catch up with the coin if it fails to record two weeks of the consecutive price increase. If market dynamics remain the same, Solana might experience a small dip in the coming week, although support is relatively strongest in the $60-$70 price range.
The coin has been known to almost defy the basic principle of technical the Relative Strength Index (RSI). This principle states that once a coin is overbought it is prone to correction very soon. The latest bull run saw SOL stay in the overbought region for almost five months.
We may see a repeat of the last event during this bull run. SOL may experience a massive influx of investors, but it may remain overbought until the end of the year. If this proves true, the coin may surge above $150 by the end of the year.
SOL currently has a market cap of over $30 billion, making it the eighth-largest cryptocurrency. With current network capabilities, many more developers are likely to start building on the network, boosting the value and positively affecting the market cap ranking.
Solana price forecast for 2022
After a groundbreaking bull run in 2021 that should spiral over into 2022, the crypto market might experience a significant pullback. However, if the Solana ecosystem has even more apps by then, and continues on the adoption path, then it should be able to weather a storm without dropping much of its value.
If the coin closes in 2021 above $150. We may see it surge as high as $200 during the first half of 2022. The SOL/USD pair may rise as high as $350 at the end of the year.
Solana price outlook for 2023
2023 may experience a spillover of bullish sentiment from the previous year. This spill may ensure that SOL continues above $350 for the first two but the coin may start to fluctuate afterward and fail to hold on to $350.
If network adoption continues, then the coin may be in for a massive price rally. This rally may propel Solana above $400 and could start around October.
Solana Price Prediction For 2024
Solana may be heading to 2024 on a bullish note as well, especially given that it is a historic year of Bitcoin halving. The halving event often results in bullish market sentiments, which SOL will likely benefit from.
If the buyers respond to the results positively, a top ten coin would usually see at least a two times price increase, a move that would see Solana trade closer to $800-$1000 by the end of the market cycle.
Solana Price Prediction For 2025
Depending on the results from 2024, the SOL/USD pair may be grappling with the bears or trading sideways. If the latter happens, we may see the pair steady at around $800-100. Traders could also expect a price hike towards the end of the year that may be a launchpad to $1500.
How High Will Solana Go?
Some investors wonder how high Solana coin can go. The truth is that Solana is merely a one-year-old project and is already worth so much. If the network continues to onboard more users at the same rate, then the Solana outlook will be exciting for investors. It could go as high as becoming a four-digit crypto asset within the next decade, or being among the top 3-5 cryptocurrencies.
What Could Go Wrong?
Solana may be enjoying the limelight at this time, attracting developers and users to build communities around the network. The team trusts what it has built, though, and has a gamified portal urging users to attempt to break Solana.
However, it is worth noting that even though Solana has superior and scalable technology, the network is yet to experience large-scale adoption that would ultimately test its capacity in the real world.
Additionally, only time will tell whether enough developers and users will eventually adopt Solana, at least significantly ahead of other competitors such as Ethereum, Avalanche, Tezos, etc.
Solana has also not lived through a grueling crypto bear market like what the industry saw in 2018. Will the ecosystem have the strength to deal with such a market downturn?
This article provided insight into Solana and how recent events in the crypto space have affected its native coin, SOL. The article concluded with several Solana predictions ranging from 2021-2025.
It is important to note that Solana, like most cryptocurrency networks, is still under development and may require a major upgrade or two over the next five years. These developments will affect the coin as it may be subjected to more volatility. The information above should not be construed as investment advice and should only be used for informational purposes.
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