Disclaimer: The datasets shared in the following article are compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
Introduced over 2 years ago in 2020, Solana has emerged as a leading cryptocurrency that uses the “proof of stake” mechanism. This, in addition to being one of the first to use the innovative “proof of history” mechanism. In recent years, it has given Ethereum a tough run in the global cryptocurrency market.
The currency rose by around 12,000% in 2021, remaining bullish for almost the entire year. At launch, SOL’s price was under $1. But during the bullish run of 2021, it rose to its own ATH of $258.93 on 6 November.
However, the current year so far has proven to be highly volatile for all cryptocurrencies, and Solana did not escape this strain either. So far this year, the maximum price has been $136.38, dated April 3. Solana’s blockchain has also been recent hacked and thousands of users have reported losing their money worth around $8 million. At the time of writing, the altcoin was trading at just over $46.97.
Why these projections matter
Today, Solana is one of the fastest growing cryptocurrencies in the market with almost 89 billion transactions so far. The average cost of a transaction on the platform is $0.00025, making it one of the most economical altcoins in the crypto universe. With 1,850 validator nodes, it claims to be one of the most secure blockchain networks as well.
Today, it is the ninth largest cryptocurrency in the market, with a market capitalization of over $13 billion. Thanks to its high speeds and low costs, Solana has successfully attracted interest from both retail and institutional investors worldwide.
What is unique about the Solana blockchain is that it is the first platform to adapt the “proof of history” mechanism. Its innovative approach to technology has gained significant traction in the market. Ergo, investors must be well aware of past results, current market sentiment and future predictions.
In this piece, we’ll pay close attention to the most important performance parameters of Solana, with special emphasis on price, market value and volume. We will also summarize the predictions of the world’s most popular and trusted analysts, as well as the Fear & Greed Index to assess future projections.
Solana’s price, market value and other calculations
After an extremely successful performance last year, the cryptocurrency market began to decline in 2022. From around $178 in early January, SOL’s price dropped to as low as below $80 in mid-March. In early April, it broke the $135 mark before again continuing to fall lower and lower. At press time, SOL was trading at just under $47, underscoring a fall of around 70% in 7 months.
At the end of 2020, Solana’s market value was just over $70 million. 2021 turned out to be a dream run for the currency as its market capitalization continued to rise higher and higher, climbing as high as $77.99 billion on November 6. When 2022 began, the market cap was $55.19 billion, and then it hit a low of $25.49 billion on March 13.
Market conditions improved in April, briefly, before plunging again.
Messari’s James Trautman recently published a report analyzing the state of Solana in the second quarter of 2022. With volatility widespread across metrics in Q1, Solana completely crashed, in line with all the other cryptocurrencies in Q2. Macroeconomic conditions worsened for the industry as tighter regulations continued to come into place and we witnessed the $60 billion collapse of terraUSD and LUNA.
Revenue fell by 44.4% due to poor network performance, and average transaction fees in turn fell by 40.6%. In Q2, the P/S ratio was 847x. Compared to Q1, TVL also decreased by around 68%, corresponding to a ~70% drop in TVL across all top 10 DeFi protocols.
The report also mentioned that Solana is one of the leading blockchains when it comes to NFT transactions. Currently, it is home to Solanart, Metaplex, and Magic Eden, among several other NFT marketplaces. Therefore, an increase in this asset class can inversely affect the price and volume of its native cryptocurrency as well.
Solana Price Prediction 2025
We must understand that the experts’ predictions vary widely. Each analyst weighs a specific set of factors to predict the market and various currency calculations. These analysts study the past market trends as well as future speculations and then arrive at their predictions. It is therefore a matter of course that the market forecasts vary considerably. Even then, unexpected technological and economic changes continue to disrupt the market wildly, thereby affecting currency calculations.
Now let’s look at what different cryptoanalysts have to say about Solana’s future in 2025.
A Changelly blog post claimed that the maximum and minimum Solana prices in 2025 will be $213.55 and $174.43 respectively. On average, it will trade at around $179.57 in 2025, it added, with SOL’s potential return estimated at 441%.
Finder’s expert panel also had some predictions to make. According to the panel, SOL can be expected to reach the $166 mark by 2025. It is worth pointing out here that these predictions were made just last month. On the contrary, the panel’s January 2022 predictions claimed that SOL will go as high as $486 in 2025.
DigitalX’s Alex Nagorskii has been particularly optimistic about the cryptocurrency, claiming,
“Solana has implemented several promising protocol updates that appear to have reduced outages in the short term. It remains to be seen if the stability will persist. Solana has captured significant portions of the NFT market from Ethereum and remains a decent contender in the L1 race.” »
Solana Price Prediction 2030
Predicting markets after 8 years is very speculative; it is anyway speculative even for a shorter period. Many well-known cryptoanalysts and commentators have nevertheless predicted Solana’s calculations for 2030.
In fact, Fortune recently reported that FTX CEO Sam Bankman-Fried so that SOL is the most “undervalued token right now… at least a month ago.” He added,
“I think it had a lot of bad PR over a short period of time — I think it deserved it, to be clear: Technologically, it had a lot of crap to work through … But I think it’s already worked through two-thirds of it. I think it will come through the second third.”
As for 2030, Finder’s panel predicted that SOL will go as high as $512 in 2030. As was the case for 2025, the panel’s January predictions were very different from the July predictions.
Panxora Hedge Fund’s Gavin Smith believes that,
“SOL is one of the leading competitors in the smart contract blockchain space. They will likely be one of the main beneficiaries if the Ethereum upgrades do not lower transaction fees.”
It would be remiss not to mention the fact that the Solana network is prone to power outages and has been for some time now. Will these outages continue and are they likely to have an impact on SOL going forward? Well, maybe it’s too early to tell. According to Bitwave’s CEO,
“… keeping an eye on Solana, but it’s the only blockchain that regularly has major outages, which is just not possible for a financial technology.”
In fact, over 65% of Finder’s panelists believe that Solana’s network will continue to see more disruptions in the future.
Solana has nevertheless continued to implement solutions to improve network stability and reliability. It is also focusing on expanding its market ecosystem, with the introduction of NFT marketplaces, EVM compatibility, promotion of Solana Pay and the introduction of Solana Mobile.
Investors should keep in mind that the financial market is still very volatile, especially the cryptocurrency market even more so. Neither individual nor AI-powered analysts can anticipate unexpected forces, and their predictions are highly likely to go wrong. It is for this reason that you should do your research and invest wisely. Still, the fear and greed index for Solana had something positive to say to society.
Solana Fear and Greed Index is 55 — Greed
Current price: $46 pic.twitter.com/CkGQSJOh0h
— Solana Fear & Greed Index (@SolanaFear) 13 August 2022