Solana Price Prediction: Why Solana is Rising Today?

Solana, also known as the potential “Ethereum killer”, has registered a staggering rally of 82.98% in the last month. Nearly 22% of this surge occurred only in the past 7 days. The altcoin has overcome multiple resistance levels of $25, $28, $30, $35 and now even $40. These bullish signals show that Solana has emerged as one of the top coins this “uptober”.

This green recovery in the SOL price has got its investors wondering what’s causing this spike and what happens next. So, let’s dissect all the primary factors contributing to this price action. Along the way, we will also dig into the wild cards that can bring in future price swings for Solana.

Let’s begin from scratch by understanding Solana (SOL) briefly.

About Solana (SOL)

Solana is an Ethereum-like blockchain platform that provides a scalable infrastructure for developers to build scalable dApps and NFTs. It stands out from similar networks through some architectural design choices that fasten transaction settlements and customize applications.

It uses a variation of proof of stake consensus, known as proof of History, to process 50,000 transactions every second. This capacity is nearly 10,000 times faster than Bitcoin and 4000 times better than Ethereum.

The Proof of History consensus is the key catalyst behind these capabilities of Solana. This consensus involves an algorithm that applies a time stamp on each new Solana block. Through this timestamping, it becomes possible to figure out the right series of all transactions. It helps the Solana blockchain to keep track of the on-chain transactions so that its validators do not have to. In that way, it saves the time of validators to confirm the transaction order, allowing them to process multiple transactions simultaneously. While other network nodes coordinate to verify transactions, Solana nodes do not have to do that. They can process and verify these transactions, boosting Solana’s scalability at a minimal fee of $0.00025 per transaction.

Solana’s native token is SOL, which users use to pay transaction fees and participate in the staking protocol. They also get to vote on proposals related to the future upgrades of the Solana network.

Solana (SOL) Price History

Solana (SOL) is listed on the crypto market at $0.22 after an initial coin offering (ICO) in 2020. On its first day of listing, the SOL price surged to $1.50 but soon lost the gains and came down to $0.50 within one month.

As the popularity of SOL gradually grew, the coin rallied in June and reached $4 by August. The rally continued, taking SOL Price to $5.10 by the first week of September. However, It stabilized after crashing 60% to $2 first and then $1.02 by December 2020. SOL ended the year at $1.51, a staggering surge of 586% from its launch.

The year 2021 started well, as the SOL price doubled within one month. Simultaneously, SOL crossed the market cap of $1 billion. But it was just the beginning as the coin rose and reached as high as $19 in February, with an additional 50% hike in April. When everyone thought it was the highest SOL could ever go, the altcoin started another rally and hit $61.44 on May 18.

But things immediately took a U-turn when the SOL price crashed 50% in a single day and hit a low mark of $19 in a few days. Every cloud has a silver lining, and this crash, too, had it. The following months were of recovery when the coin regained $40 value. With the beginning of the second half of 2021, SOL again began to gain momentum, breaking multiple resistance levels and hitting a staggering ATH of $260 in November 2021. A key reason behind this unbelievable surge in SOL price is the growing NFT ecosystem and DeFi hype in 2021.

Then came 2022, when almost all the gains made by SOL evaporated into thin air. The collapse of one of the biggest cryptocurrency exchanges, FTX, was the prime reason behind the catastrophic fall in SOL prices. Since the fraudulent crypto exchange had staked over $122 million in SOL, its fall directly impacted investors’ trust. Additionally, the Solana blockchain suffered multiple outages and NFT-induced network congestion issues, resulting in bearish sentiments in investors about it. A cumulative effect of both these negative Solana news made SOL lose 94.2% value in 2022.

Things have become better in 2023 so far, as SOL made a remarkable comeback. Its price tripped since the beginning of the year. Its performance has made it one of the best-performing crypto this year. After staying below $25 for over a year, SOL finally broke its resistance and is trading at nearly $46 at the time of writing.

That’s the Solana price history so far.

Now comes the question of what’s next for Solana?

To figure it out, let’s discuss the upcoming price possibilities of this popular crypto.

Solana Price Prediction (INR & USD) 2023

After a long crypto winter, Solana Price has already boosted by over 400% in 2023 so far. A majority of this surge registered after September 11. It has much to do with the rising possibilities of Bitcoin Spot ETF approval and its effect on market sentiments. With the news of investment giant Blackrock being sure about getting approval on its Bitcoin Spot ETF application, the investor zest in the market is coming back. These bullish sentiments, accompanied by the Bloomberg analysts’ report stating a 90% chance of Bitcoin ETF approval by January 2024, further pushed the bullish sentiments among crypto investors.

As a result, the Bitcoin price also broke significant resistance levels by crossing the $35000 barrier after a year. It led to a ripple effect on altcoins, including Solana, causing significant price breakouts.

In the beginning months of 2023, Solana Labs, the company behind Solana blockchain, launched its flagship Android product, Solana Mobile, showing its commitment to network growth and expansion. Such steps did help the project to do some damage control this year over its affected reputation in the FTX saga.

If we look at the data of the past few weeks, the SOL rally has been strengthening, with all its indicators showing a buying momentum. For instance, its 30-day average has increased above its 200-day average, an obvious indicator of a breakout from a lower price level. The positive market sentiments and such technical indicators suggest a peaking rally for SOL by the end of this year.

SOL price, in recent days, has experienced multiple significant breakouts at $25, $28, $30, $35, and then $40. We can witness some additional price breakthroughs in SOL prices in the upcoming weeks, as it is unlikely for the SOL crypto to fall back down to its levels.

Though as a project itself, SOL has yet to receive any crucial upgrades or news recently. However, altcoin has benefited immensely from the ongoing sentiment-oriented rally driven by Bitcoin ETFs. Moreover, it registered a remarkable uptime of 100% for over seven months, rectifying its reputation among investors. If things continue to go well, this rally can prove a game-changer for Solana by the end of this year.

Considering all these factors, investors can expect SOL to cross the $70 mark by the end of 2023. In the worst-case scenario, the coin can drop to its initial resistance level of $25. The average price projection for the same is $55.

Solana Price Prediction (INR & USD) 2024

SOL price has a high potential of further surging in 2024. According to its on-chain analytics, SOL currently has over 230k active users. These active users were nearly 600k when the SOL hit its ATH in November 2021. Since the token still has a respectable number of active users, despite its price being almost 93% down from ATH, it shows the strong trust of the SOL community. The difference in the currently active users of Ethereum (400k) and Solana (230k), despite last year’s downfall of Solana, also indicates that it still has a spark left to renounce.

Another unavoidable factor to consider for 2024 SOL price prediction is the Bitcoin halving. Historically, the Bitcoin halving events have been the trailblazers of a bull run in the crypto space by bringing investors’ interest back. Thus, if History repeats itself, chances are that SOL will begin a long-lasting bullish phase where it may break its past ATH value.

Since the NFT ecosystem is also intertwined with the crypto space, it is also highly likely to see a recovery in 2024. If that happens, SOL price upward movement will be even more stellar as Solana is a hub of NFT activities after Ethereum. Solana has retained most of its users in the bear market despite its token, SOL, performing poorly in the same period. However, once the price sees a noteworthy recovery, chances are that many SOL holders will sell their investments, causing SOL prices to see temporary setbacks.

With this in mind, our estimated maximum Solana price prediction for 2024 is $150, and the minimum prediction is $82. The average SOL price for the same year could be $95 by the end of 2024.

Solana Price Prediction (INR & USD) 2025

If you are someone waiting for the euphoria moment regarding your SOL investment, 2025 could be the year for it. With the expected series of events in 2024, the year afterwards could give the best bull run in the History of Solana.

This bull run can turn out to be the most beneficial one for SOL if it successfully solves its outage and centralization issues in the upcoming time. Suppose Solana overcomes its decentralization and outage issues to become ready for managing high load in the bull run. In that case, it may secure a position in the top 3 cryptos in the market by 2025.

Examining all these possibilities, we predict the SOL price in 2025 to be $320 in the best-case scenario and $130 in the worst-case scenario. Our average SOL price prediction for 2025 is $214. However, we advise investors to take this prediction with a pinch of salt, as any unexpected black swan event could bring down the SOL price.

Solana Price Prediction (INR & USD) 2030

The price condition of SOL for 2030 depends on how its upcoming upgrades unfold. Solana co-founder Anatoly Yakovenko shared that the network aims to give every validator a fair chance to contribute to block production and reward earnings in the long term. It is also launching a new feature, MetaMask Snaps, that allows investors to directly manage SOL and NFTs through MetaMask wallets. Thus, if the Solana network continues to introduce such valuable upgrades to get rid of its weaknesses and support the rising adoption of crypto, its price can double and even triple by 2030.

Moreover, by 2030, two Bitcoin halving events will take place in 2024 and 2028. Thus, SOL could benefit from the two bull runs driven by bitcoin halvings till then.>

Considering that, our SOL price prediction 2030 is $563 maximum, $345 minimum and $447 average

Here is the tabular representation of the Solana Price for 2023, 2024, 2025, and 2030 in USD

Can Solana (SOL) reach $100 in 2023?

SOL price already crossed the $46 mark at the beginning of November. It has been showing an upward trend for over two months and is expected to continue in the upcoming weeks, too. Thus, a $100 mark before 2023 is somewhat out of the question. However, for it to happen, SOL needs to keep gaining value for the next couple of weeks.

Is SOL a good investment?

SOL has emerged as a robust cryptocurrency since its launch. From its instant popularity after the launch to surviving the tough chills of the prolonged crypto winter, SOL has proved to be a suitable option for investors. Its extremely high capacity of performing 50,000 transactions every second makes it a star crypto among all its competitors. Thus, it can be a good investment while practicing risk management and proper research.

Disclaimer: The content provided in this SOL price prediction blog is purely for informational purposes and should not be considered financial advice. Cryptocurrency markets are highly volatile and subject to rapid fluctuations. Any investment or trading decisions based on the information presented here are at your own risk. It is recommended to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.