Solana Price Prediction: Is Solana the best blockchain platform in existence? Some experts would certainly have you believe so. With its support for smart contracts and Dapps, Solana is one of the most important players in the DeFi space. Many argue that it might even be better than Ethereum in that regard.
This puts Solana in an excellent position to become an indispensable finance tool in the near future. Solana will reshape our understanding of money and finance as we move further away from regulators and central banks.
But what’s so great about Solana in the first place? Is it really a good investment you can’t sleep on?
For starters, transactions in Solana are considerably faster and cheaper than they are in Ethereum, while the blockchain supports an equally vast array of decentralised apps. In theory, it can do everything Ethereum can — but do it better and more affordably.
Solana is so technologically elegant that in 2021 it grew by 12,000%! The massive leap was a testament to investors’ belief in this platform’s capabilities.
Today, Solana has a market cap of over $30 billion, making it the eighth most important cryptocurrency in the world. The best news? Experts predict it will keep growing in price as DeFi gains momentum.
Should you take the plunge and invest in Solana? Is SOL really going to hit $1,000 as many expect? In this Solana price prediction, we’ll investigate the token’s recent trend and try to find out what’s in store for the future.
Solana Price Prediction News: What’s Affecting This Crypto Token Lately?
Like other cryptocurrencies, Solana has experienced a price slump due to the shifting attitudes of central banks around the globe, chiefly the Federal Reserve. Thanks to the pandemic winding down and inflation climbing to multi-year highs, regulators are planning multiple interest rate hikes in 2022, which has weakened all risky assets, including crypto tokens.
Furthermore, Solana recently took additional heat after being involved in a Wormhole hack. Wormhole is a bridge that allows transactions to cross over between Solana and Ethereum. While it has brought more flexibility to the world of decentralised finance, it has also exposed security concerns when tokens hop from one blockchain to another.
In February 2022, someone tricked the bridge software and essentially stole $320 million worth of cryptocurrency. Most of it was ether ($251 million), and some were Solana coins ($47 million). However, the hack originated on the Solana end of the bridge.
The investigation into this incident is still ongoing, though Wormhole has reportedly compensated for the stolen tokens. Nevertheless, the hack was terrible PR for DeFi, where bridges like Wormhole have become essential in facilitating transactions between different platforms.
History of Solana Price Prediction & Technical Analysis
As a relative newcomer to the crypto market, Solana traded under $1 up until late 2020. Then, inflation started rising in 2021, and all cryptocurrencies posted record gains, including Solana.
SOL reached an all-time high of almost $260 in November 2021, marking a 12,000% growth. At its peak, Solana was the fifth most valuable cryptocurrency globally.
In early 2022, the SOL coin price was around $97. The current price is 60% lower than its price maximum from last year. Solana gets the eighth spot in terms of market cap ($30.8 billion) at this value.
In terms of Solana’s price chart, we see that the token has completed a bearish engulfing pattern and is likely heading for further weakness over the coming days.
As for technical indicators, oscillators give us a buy signal on the weekly chart, while moving averages suggest that we sell Solana. Both indicator categories agree on a sell signal on the monthly chart.
Overall, technical analysis tools indicate that Solana’s price is likely to continue lowering for the time being.
Solana Price Predictions
With the methods of technical analysis, charts, and price history on our side, we took a careful look at Solana to try and determine where it could go in the next few years. Here are our Solana price forecasts up until 2025.
2022
Based on the latest developments and the bearish signals that technical indicators give us, we expect Solana to trade in a subdued manner this year. Plus, the pressure of higher interest rates will keep all cryptocurrencies at lower levels.
It is reasonable to expect SOL to reach $100 again towards the middle of the year when the markets more or less absorb the shock from higher interest rates. A preliminary end to the Covid-19 pandemic could potentially drive the Solana price above this resistance level, but if we have learned anything in the past two years, it’s to not hope for too much.
2023
In line with our cautious Solana price forecast, we see SOL moving slowly in 2023 as well. In our view, an average Solana price of $150 is plausible for 2023.
2024
As you may have noticed, so far we were going by the small but steady increments in our Solana price predictions. We applied the same logic to 2024, which gave us a forecasted Solana price of about 200 USD.
2025
The next logical minimum price level for Solana is $250 by 2025. Many pray for a SOL price of $1,000, but such price predictions seem a bit too hopeful based on its current price. Still, anything is possible in a highly volatile market.
However, note that these estimates are based on a somewhat pessimistic forecast of slow-but-steady growth in the cryptocurrency market. It does not account for any unforeseen factors that could speed up the price increase of crypto tokens, just like the boom in 2021 took us by surprise.
Experts’ Take on Solana
- Coin Bureau recently flirted with a Solana price prediction of $1,000. In his most recent video on SOL, he explained that he has some concerns regarding liquidity and the future governance of the blockchain, which will affect Solana’s growth prospects. Moreover, he also pointed out that there are no major upgrades on the Solana roadmap, so there isn’t anything specific to look forward to that can affect SOL’s value. Ultimately, he did not share whether he thinks Solana can reach $1,000 or not and didn’t make a Solana projection for the next few years.
- Nathan Sloan from Investing Made Simple argued that Solana closely tracks its main rival, Ethereum. Many experts predict that Ethereum might grow three to six times in 2022 as there is more demand for DeFi solutions. Based on this calculation, Sloan gave a Solana price prediction of $510 for 2022. He expects the price of Solana to rise again in the near future.
- Sam Bankman-Fried, CEO of FTX and renowned cryptocurrency billionaire, is an avid supporter of Solana. Even with the recent problems the platform has experienced, Bankman-Fried still insisted in a recent Tweet thread that Solana is superior to other cryptocurrencies because of the faster, cheaper blockchain it supports. He favours more optimistic Solana price predictions.
- Billionaire Mike Novogratz from Galaxy Investment Partners also pointed out that the technology behind Solana is more promising than some other blockchains, so he believes SOL has a bright future ahead. He has not made a specific Solana price prediction for 2025 yet, but he expects the SOL price to rise.
What Is Solana?
Solana is an innovative blockchain platform that initially launched in 2017. Like Ethereum, Solana was developed to allow smart contracts and decentralised apps, making it a key player in the DeFi space.
In fact, many people view this platform as an Ethereum competitor. The main advantage of the Solana network is that transactions are both faster and cheaper.
The native cryptocurrency of the platform is also called Solana and uses the SOL currency code.
The Solana Foundation, which manages the platform, has put a circulation cap of 489 million SOLs on the blockchain to keep inflationary pressures in check.
What Protocols Does Solana Use?
Unlike other blockchains, Solana simultaneously uses two consensus methods.
First, there is the Proof-of-stake method. The PoS protocol allows people to stake their Solana tokens to participate in the verification process, which keeps the blockchain secure and prevents fraud. Because the stakes are so high, people trust that nobody would abuse the chain since they will lose disproportionately more than they would gain if they attacked the platform.
Most newer platforms prefer the proof-of-stake protocol because it seems more secure and environmentally friendly than the older proof-of-work consensus method.
In addition, developers also introduced a brand-new secondary mechanism to the Solana blockchain – Proof-of-history. In essence, this protocol creates a standardised clock, according to which all transactions on the blockchain are logged.
As a result, the platform can keep track of transactions chronologically. This wasn’t possible in previous blockchains, where transactions were logged according to each user’s local time.
In theory, PoS and PoH work together to ensure the proper flow of events on the blockchain and keep it secure.
Where to Buy Solana
Similar to other cryptocurrencies, Solana can be bought or sold on crypto exchanges such as Coinbase and Binance. In addition, you can also trade SOL via a financial broker such as eToro.
If you choose the eToro route, there’s a number of advantages you can benefit from. For instance, the broker has a diverse asset portfolio, so you can also trade Bitcoin, Ethereum, and even non-crypto instruments like stocks, CFDs, etc.
What’s more, eToro is an excellent solution for beginners because it offers demo trading accounts to practice without risking any money.
People Also Ask
Prediction on How Much Will Solana Price Be Worth in 2022?
Considering the current situation in the cryptocurrency market, we do not expect Solana to grow too rapidly in 2022. Thus, a price forecast of $100 to $150 seems reasonable.
How Much Will Solana Price Be Worth in 2025?
Based on our research, a minimum of $250 is a realistic Solana price prediction for 2025. It is possible to see a steeper growth, perhaps to the coveted level of $1,000, but that would depend on the overall performance of other crypto giants.
What Will SOL Be Worth in 2030?
Taking a more level-headed stance, SOL could be worth around $350-$400 by 2030 if there are no major upsets (either positive or negative) in the cryptocurrency market.
Disclaimer
The forecasts made in this Solana price prediction are speculative and are not an accurate predictor of SOL’s future price. This Solana price prediction should not be considered professional investment advice and is not intended as such.
We have attempted to shed some light on the SOL price trend in this Solana forecast, but the financial markets are unpredictable. You should always do your own research and consult a professional before making any financial decisions. Even so, nobody can guarantee you a profitable investment or give you an error-proof Solana price prediction.
All financial trading poses a risk to your capital. The cryptocurrency market is characterised by high risk and high volatility, and historical data is not enough to guarantee a good investment. Do not spend more money than you can comfortably lose in the event the market turns against you. Proceed at your own risk.