After significant exposure to the FTX collapse in 2022, Solana appears to have finally come out the other side, with its SOL token experiencing a major bull run.
Over the past few months, SOL has been fending off significant sell-pressure from the bankrupt FTX exchange as it dumped tokens to repay creditors.
Now, Solana has rocketed by 90% over the past month and 22% in the previous week. This has been largely attributed to an influx in decentralised protocols and the mainstream explosion of SOL-based meme coin Bonk.
So what does this mean for an up-to-date Solana price prediction? Let’s take a look.
What is Solana?
Solana is a high-performance blockchain platform that aims to provide fast, secure, and scalable solutions for decentralised applications (dApps) and cryptocurrencies. It was designed to address the limitations and scalability issues commonly associated with traditional blockchain networks.
Founded in 2017 by former Dropbox and Qualcomm employee Anatoly Yakovenko, Solana was among the first to utilise a proof-of-history (PoH) algorithm, as opposed to the more frequently used proof-of-work (PoW) or proof-of-stake (PoS).
In addition to PoH, Solana utilises a variant of the PoS consensus algorithm called Tower BFT (Byzantine Fault Tolerance). This consensus algorithm enables the network to achieve high throughput and low latency by utilising a dynamic, decentralised set of validators to agree on the state of the blockchain.
Solana’s native token, SOL, plays a crucial role in the network. It is used for transaction fees, staking, and participating in the consensus process. Furthermore, SOL token holders can participate in the governance of the Solana ecosystem, allowing them to propose and vote on protocol upgrades and improvements.
SOL price history
When SOL first hit the market in mid 2020, it began trading at $0.5741. It stayed roughly around this mark for the rest of the year before gaining traction in the 2021 bull runs, peaking at $56.09 on 19 May, before crashing five days later to $24.50.
A few months later on 15 August, the price of SOL experienced a low of $44.15, which was soon followed by a surge of 21% to reach a high of $53.54 the following day. On 21 August, the coin reached a peak of $78.7 before surpassing the $80 threshold on 28 August, leaping to a high of $88.85, according to CoinMarketCap.
On 10 September, SOL achieved a new pinnacle, reaching $187.61, which was soon surpassed by another record of $202.32 on 25 October, and ultimately reaching an all-time high of $260.06 on 6 November 2021.
The end of the year proved to be challenging for crypto in general and on 14 December, SOL had witnessed a loss of approximately 37% in value, with the coin being valued at $161.36.
In 2022, high volatility saw the price of SOL stoop to $29.7 on 15 June. The price eventually plummeted to a mere $13.99 on 9 November. On 11 November, following the announcement of FTX’s bankruptcy, it was priced at $16.34.
SOL’s bullish 2023
By the beginning of the year, SOL started to regain some of its recent losses. Having started 2023 at $9.98, it reached a high of $26.14 on 29 January. It slipped to $20.13 on 10 February. Following the collapse of Silverbank on 9 March, SOL fell to $17.31. But it soon recovered back above the key $20 level and by 17 April SOL was trading at $25.36.
More recently, SOL has seen some incredibly bullish price action from investors. The Ethereum rival faced selling pressure due to the FTX bankruptcy estate liquidating its holdings. The collapsed exchange sold mass amounts of SOL to pay back creditors towards the end of the year.
Despite the sell-off, SOL made large gains, rocketing above $50 by the end of November. It continued the bull-run into December, where it surged above $100 and overtook XRP to become the fifth largest cryptocurrency by market capitalisation.
The growth of SOL has been attributed to the expansion of its decentralised finance (DeFi) ecosystem and recent popularity of Solana-based meme coins.
Decentralised exchanges on the Solana network have seen increased trading volumes. For instance, on 15 December, Orca recorded $746 million in trading volume, a significant increase from its previous high of over $100 million.
This surge in activity is partly due to the rise of meme coins like Bonk, a dog-themed token that gained traction in the latter half of the year, now boasting a market cap of over $1.2 billion.
At the time of writing on 28 December 2023, SOL is currently moving at $105, down 6% in the past 24 hours, but up 22% in the previous week. According to CoinMarketCap, it has a live market cap of $44 billion.
Solana price prediction
So after all that, what is the latest SOL crypto price predictions doing the rounds as of 28 December 2023?
CoinCodex’s Solana price prediction for 2023 is bullish with 25 out of 29 technical analysis indicators pointing towards buy. It added: According to our historical data, it is currently profitable to invest in Solana.”
The site’s SOL coin price prediction suggested that it would climb to $113 in five days time and $122 in a month.
The cryptocurrency could then reach $453, according to CoinCodex’s Solana price prediction for 2025.
WalletInvestor’s Solana price prediction for 2024 is bearish and believes that SOL is a “bad long-term (1-year) investment”. It said that the price of Solana may drop from its current price of $105 to $70 within the next year.
According to a SOL price prediction from DigitalCoinPrice, the average price will be $251 in 2024. The Ethereum rival was suggested to hit $375 in 2025. DigitalCoinPrice’s Solana price prediction for 2030 sees the value of SOL rocketing above $1,000 to $1,034
A one-year Solana crypto price prediction from Gov Capital forecasts the price of SOL to be $165. In five years’ time, SOL was expected to hit $418.
FAQs
Can Solana reach $1,000?
At the time of writing, there are many bullish price predictions after SOL’s recent rally. However, it was only DigitalCoinPrice who suggested Solana could rocket past the $1,000 mark. The site expected this to occur in 2030.
However, Solana has had a rocky few years after its involvement with bankrupt exchange FTX. Investors should never invest more than they can afford to lose.
What will Solana be worth in 2025?
It depends who you ask. CoinCodex suggested it could reach $453, whereas WalletInvestor expected it to fall to $61 by the beginning of the year. Investors should always carry out thorough due diligence before buying any cryptocurrencies.
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial advice. CoinNews and its authors are not financial advisors or experts. We recommend that you consult a professional financial advisor or conduct thorough research before making any investment decisions. Cryptocurrency investments carry a high degree of risk, and you should only invest an amount you are willing to lose. The opinions expressed in this article are those of the author and do not necessarily reflect the views of CoinNews or its affiliates.
