Is Solana (SOL) a Good Investment In 2024? Detailed Analysis

Recently, the price of Solana (SOL) increased by 7.56% within 24 hours, surpassing Binance Coin Price (BNB) in market cap briefly. At that time, SOL’s market cap was $49.36 billion, slightly larger than BNB’s $48.5 billion, securing the third position according to CoinMarketCap data. However, as of the current moment, BNB has regained its position, now surpassing SOL by 2.25%. Over the past day, Solana has consistently traded above the $100 mark.

Beyond its market fluctuations, Solana boasts various real-world applications including Web3 gaming, NFTs, DeFi, and opportunities for crypto-earning. This article will explore whether investing in Solana in 2024 is a wise decision

Overview of Solana

Solana is one of the supposed “Ethereum Killer” blockchain projects improving upon the limitations like high gas fees and slower transactions.

Unlike other existing blockchain networks, Solana runs based on Proof-of-History (PoH) consensus mechanism. This enabled the network to achieve a high throughput of 50,000 transactions per second (TPS), while still maintaining the security and scalability of the network.

The ultra-fast transactions combined with the low fees are the reasons why Solana is considered an Ethereum killer. It is one of the few blockchains that partnered with Visa for USDC settlements in September 2023.

Moreover, Solana is the only blockchain that released a Web3 smartphone and remained at the forefront of blockchain innovation. Since its launch, many blockchain applications such as NFTs, dApps, DeFi lending protocols, Web3 games, and applications are being developed on the Solana network.

Price History of Solana (SOL) Coins

The Solana coin, SOL, was launched in March 2020 with a starting price of $0.98 per coin. It traded sideways for a long time and then reached its first all-time high value of $56 in May 2021.

As the blockchain’s popularity and adoption grew with the introduction of new applications like blockchain gaming, its price continued to increase. Its unique features like ultra high TPS and low transaction fees combined with new use cases and institutional investments caused sharp price spikes in the following months.

As a result, SOL price increased by a whopping 12,000% in 2021 and reached $175 in September 2021. Adding to that, the total-value locked (TVL) on Solana also hit an all-time high of $5.73 billion.

The price rally continued and the Solana price went to as high as $260 in November 2021. However, the unfavorable market conditions combined with multiple network outages adversely affected SOL price in 2022.

Major crypto incidents such as the FTX crash and the prolonged crypto bear market also played a part in Solana reaching a bottom of $8.9 by the end of 2022. However, Solana price got back up and recorded a significant price surge by the end of 2023. It is only a matter of time before Solana gets back on its winning streak in the market in 2024.

Market performance of Solana

As of today, the price of Solana stands at $115.93, marking a decrease of 17.29% in its 24-hour trading volume, which currently sits at $2.2 billion. Despite this recent decline, Solana has experienced a notable increase of 14.05% within the last 24 hours. However, it is important to note that Solana is still trading at a significant 55.33% below its all-time high of $260.06, which was reached on November 7, 2021.

In terms of market ranking, Solana currently holds the 5th position on CoinMarketCap, boasting a live market capitalization of $50.5 billion. With a circulating supply of 437.4 billion SOL coins, Solana has demonstrated impressive price movements, with a maximum increase of 13.53% over the past 7 days and a staggering 414.50% increase over the course of the past year.

The reason for SOL’s upward trend is attributed to airdrops,  the network’s capacity to offer a cheaper and more user-friendly option compared to its rivals, and a high momentum rally in Bitcoin. Adding to this positive movement, Solana Mobile announced on its official X platform page that their new Solana smartphone received 100,000 preorders in less than a month, reflecting growing interest and confidence in blockchain technology.

Solana (SOL) Price Prediction

Solana has been rallying alongside Bitcoin and other altcoins, managing to overcome resistance levels, particularly highlighted by the 61.8% Fibonacci level. As of Wednesday during US business hours, Solana was trading at $117. However, key obstacles lie ahead, with resistances noted at $120 and the recent peak of $125. Surpassing these hurdles would significantly increase the likelihood of Solana closing February above $140. 

Technical indicators, such as the Moving Average Convergence Divergence (MACD), are supporting this positive trend, with a buy signal indicating an intact uptrend. Nevertheless, if Solana fails to break the resistance at $125 in the near term, traders may anticipate a minor reversal.

This could prompt investors to take profits, particularly considering Solana’s impressive performance since its support at $80 in January. The $100 region remains crucial for Solana and could potentially serve as support again if market dynamics shift and prices decline, presenting opportunities for dollar-cost averaging (DCA) given Solana’s history of rewarding such dips.

Crypto expert Koroush Khaneghah has expressed optimism about Solana (SOL), suggesting a strong possibility of the token reaching $140. SOL could potentially follow suit with a surge of over 30% to reach this target. It seems poised to sustain its upward momentum, aiming for levels near $150 by mid-2024. Notably, the surge in open interest, surpassing $1.75 billion, further demonstrating SOL’s bullish trajectory.

Conclusion: Is Solana a Good Investment?

Considering the recent performance and ongoing developments, Solana (SOL) appears to present a compelling investment opportunity. With its recent surge, SOL briefly surpassed BNB in market cap, showcasing its potential for growth.

Beyond market fluctuations, Solana stands out with its innovative approach, offering solutions to the limitations faced by other blockchain networks. Its unique features like high throughput and low fees, along with partnerships like Visa for USDC settlements, underline its utility and potential for widespread adoption.

Although SOL has experienced significant price fluctuations, including a recent dip below its all-time high, its current trajectory suggests a promising outlook. Technical indicators and expert predictions hint at the potential for SOL to surpass key resistance levels and reach new highs, with targets as high as $140 and beyond. 

Furthermore, the growing interest in blockchain technology and the surge in open interest further boosting SOL’s bullish trajectory, making it an attractive investment option for those looking to capitalize on the potential growth of the cryptocurrency market.

However, investors should remain vigilant and informed to navigate the dynamic landscape of cryptocurrency investments effectively.

FAQs

Does Solana have a future?

Solana has advanced features such as lightning fast transactions at low fees. It also has several blockchain applications like NFT trading, Web3 gaming, DeFi earning opportunities, and more. So, yes. Solana does have a future considering its blockchain innovation and adoption.

Can Solana reach $1,000?

If Solana reaches $1,000, its total market capitalization will be more than $550 billion. Considering the fact that the total market capitalization of the crypto market itself is slightly above $1 trillion in February 2024, Solana reaching $1,000 is unlikely in this year.

Is Solana a better investment than Ethereum?

Ethereum is the second-largest blockchain network by market capitalization and is undergoing some major upgrades to improve upon its limitations. On the other hand, Solana has the edge over it when it comes to faster transactions at low fees and scalability. And, Solana is cheaper than Ethereum. However, it is impossible to say which is a better investment as both have their own pros and cons.