Solana (SOL) is a cryptocurrency that provides secure, scalable and fster transactions within a decentralized network. It asserts itself as a leader in transaction speed and success rates when compared to competitors, boasting an impressive capacity of over 50,000 transactions per second and achieving sub-second finality¹. In addition to its transactional prowess, Solana is equipped to handle smart contracts, decentralized applications, and seamlessly interacts with other blockchain networks.
The price of Solana stands at $87.12, and the 24-hour trading volume amounts to approximately $2.2 billion. Over the last 24 hours, Solana has demonstrated a positive movement, witnessing a 3.89% increase. It holds 5th position on the CoinMarketCap ranking, boasting a live market capitalization of approximately $37.7 billion. The circulating supply comprises 433,135,920 SOL coins, while the maximum supply remains undisclosed at the time of writing.
Solana was launched in March 2020 initial supply of 488 million SOL. Initially priced at around $0.22, it maintained a steady course until August 2020. At that point, it began gaining momentum and reached $3.80 by the month’s end. The price fluctuated between $2 and $5 until December 2020, breaking out of this range and surging to a new high of $7.50.
The standout year for Solana was 2021, witnessing an extraordinary bull run that led to a 10,000% increase in its price. This surge was driven by the widespread adoption of Solana as a prominent platform for decentralized applications (dApps), particularly in decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming. Noteworthy projects like Serum, a decentralized exchange; Audius, a music streaming service; Star Atlas, a metaverse game; and RAY, a DeFi protocol, contributed to Solana’s success.
Reaching an all-time high of $260.43 on November 7, 2021, Solana’s announcement of a partnership with Microsoft to integrate its blockchain with Azure, Microsoft’s cloud computing service, fueled this peak. However, the price corrected shortly thereafter, entering a downtrend until the year’s end. Increased regulatory scrutiny, environmental concerns, and competition from other blockchains affected the broader crypto market. Solana closed 2021 at $101.23, still marking an impressive 3,600% gain from the beginning of the year.
The beginning of 2022 brought a modest recovery for Solana, bouncing back above $120 in January. This rebound was supported by the introduction of Wormhole, a cross-chain bridge connecting Solana with Ethereum, Binance Smart Chain, Terra, and Polygon. Despite facing resistance at the $130 level, SOL failed to sustain momentum, slipping below $100 by month-end. The subsequent months witnessed a continued decline, influenced by the global stock market crash, the strengthening US dollar, and uncertainties surrounding the COVID-19 pandemic. Solana hit a low of $86.94 on March 25, 2022, marking a 66% decrease from its November 2021 peak.
Throughout December SOL witnessed both downward trends. On December 24th the price reached $112.49 indicating a surge compared to the beginning of the month. This increase reflected a growth of 192.3% over December.
However, as January started the price began to decline. On January 24th, 2024 SOL was valued at $88.73 which indicated a decrease from its peak in December. This decline represents a reduction of 21% from its point reached in December, revealing a bearish tendency in its performance.
In the short-term, Solana’s price recovery outlook for the next 30 days indicates a range between $87.23 and $109.06, with an average forecast of $100.23. This suggests a potential for Solana to regain ground and approach the $100 milestone once again. However, the short-term landscape is marked by resistance and uncertainty. Market sentiment remains neutral, trading in a narrow range between $90 and $100, accompanied by high volatility and mixed technical indicators. Consequently, Solana’s price may exhibit fluctuations or experience further declines in the short term, depending on market conditions and relevant news.
Solana is also predicted to experience a 0.66% increase, reaching $93.26 in January 24, 2024 with a minimum price of $46.63 and a maximum of $186.52.
Looking into the long-term prospects, Solana’s price forecast is more positive. The expectation is that Solana will leverage its robust fundamentals, innovative features, and expanding adoption. Some projections indicate a potential high of $200 by the end of 2024, $515.49 by the end of 2025, and $672 by the end of 2030. These predictions draw insights from Solana’s historical price movements and the influence of Bitcon halving cycles, known to boost cryptocurrency prices over extended periods.
As per earlier CoinGape’s analysis, Solana finds itself at a crucial point, trading in proximity to the $80 support level. A breakthrough past the $82.38 resistance holds the potential for an ascent to $105 and, possibly, even $120. Conversely, a dip below the support trendline could lead to a decline, touching $60 and potentially extending to $40.
Some analysts have an optimistic view of SOL’s future, anticipating benefits from the rising demand for swift and scalable blockchains. Their projections suggest Solana could achieve $150 by the close of 2022, $250 by the close of 2023, and a significant milestone of $500 by the close of 2024. Looking further ahead, there are forecasts indicating a potential surge to $1,000 by the end of 2025 and a remarkable $10,000 by the close of 2030.
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