SOL coin price prediction: why the price boom and what next?
SOL reached an all-time high in November, so what is the SOL coin price prediction now?
- Crypto crashes
- A new way?
- Ignition fires up
- The road to recovery
- The path to glory
- Solana (SOL) price prediction
SOL, the native coin of the Solana blockchain, has boomed in the last few months and is now trading at a higher level than it was when the cryptocurrency market crashed in May. We take a look as what’s driving the price rise, and what the SOL coin price prediction might be.
The cryptocurrency market has seen crashes in May, September and November of this year. Almost every crypto that’s not a stablecoin has taken big hits. Markets often correct themselves and, over time, the prices slowly end up moving upwards. This is true of SOL.
Solana might be an extreme case, with it reaching a new all-time high of $258.93 (£188.58) on 6 November. But the fact that there is more market confidence in cryptocurrencies as a whole will have helped to kick-start a bull run. If, when and how it will end is something we don’t know at this stage, but the more people start investing and reinvesting in crypto, the more likely it is that some coins and tokens will take that momentum and find themselves really pushing forward. In this case, Solana has been a major beneficiary, but it could well happen to another crypto at another time.
A new way?
There is also the very nature of Solana itself, which has made it attractive to investors. While it does a lot of the same things that Ethereum does, it does them in a different way. For instance, the Ethereum blockchain runs on a Proof-of-Stake (PoS) method. This means that, in short, if you want to mine ETH, how much ether you can mine depends very much on how many ETH coins you already hold. If you lock in a certain amount of your ether coin into a special wallet, that gives you mining power. Staking also helps to check and process transactions on the blockchain. Solana is different because it uses a method called Proof-of-History (PoH). The idea is to create timestamps that show how much someone held and when they held it. This is to make sure that the data reflected is accurate and people are able to access coins and systems in a fair manner.
PoH is built on the same basis as PoS, so the technology that is used can run smoothly. What this means is that while the Solana blockchain, like Ethereum, is involved in things such as smart contracts, decentralised finance and non-fungible tokens (NFTs), it has something which makes it different from Ethereum. Indeed, Solana says it is potentially much faster than Ethereum. Regardless, this means that it could be an interesting crypto for investors who are looking at seeing what might be able to challenge ether in the world of altcoins.
Ignition fires up
Another driver behind the rise in the value of SOL was that as the end of August approached, there was much excitement surrounding a Solana event called Ignition. While people did not know what it was going to be, there was considerable speculation, which meant there was a real buzz on crypto social media, which in turn meant more and more people invested in SOL, helping to drive the price up.
Although there was a belief in some circles that Ignition would involve some SOL coins being burned, an event that would result in fewer Solana coins to increase the value of those that survived, that prediction was wrong. Instead, Ignition was what Solana, or at least what passes for the ‘organisation’ behind the blockchain, called a ‘hackathon’. The event, which launched on 31 August, saw programmers competing to present ideas for things that could run on the Solana blockchain. There are, the organisation says, prizes worth $5m to be won and categories include Web3, which focuses on things such as decentralised autonomous organisations (DAOs), decentralised apps and other infrastructure schemes, sponsored by the tech giant Microsoft.
Microsoft’s involvement is a particularly interesting part of the event, as it shows a traditional tech company – and one of the world’s biggest at that – becoming involved in the world of crypto and helping fund prizes worth $120,000. There are also categories for decentralised finance (DeFi), gaming and NFTs.
The DeFi category is sponsored by Standard Chartered and Jump Capital. Again, Standard Chartered’s involvement is significant because it sees a multinational banking company take part in something that could potentially serve as an alternative to traditional banking. Even if that were a commonplace thing, it can do no harm for Solana’s event to have the same sponsor as the English sporting giant Liverpool Football Club. There are prizes worth $185,000 in this category. Finally, both gaming (sponsored by Forte) and NFT (sponsored by Metaplex) categories also carry prizes of $120,000 each.
The whole event proved to be a good move by Solana because it expanded interest in the blockchain and also helped push the price of the SOL coin in an upwards direction. But how far did it go up, and when did it go up? Let’s take a look.
The road to recovery
Back on 18 May 2021, solana was in a very good place, with an intraday high of $58.30, an all-time peak. Considering it had launched at around $0.78 in April 2020 and did not break the $1 barrier until July that year, the price demonstrates the growth that had happened during the cryptoboom of early 2021. What happened the next day meant that SOL, along with most other cryptocurrencies, ended up in a bad place. It lost more than 48% of its value to reach an intraday low of $29.43 before recovering to close at $35.11. This loss may have looked like a short-term blip when 20 May’s high was $51.26, but any optimism was short-lived as the price spiralled down, ending the month at $32.82. Things then started to recover again, but the intraday high of $44.10 on 7 June was the best SOL price achieved that month. Having closed June at $35.56, the following month saw SOL remain sluggish, closing 31 July at $36.83.
The path to glory
In the second half of August, the story started to get more exciting. On 15 August, an intraday low of $43.45 was followed by a rise of more than 25% to an intraday high of $54.63. While SOL closed the day at $53.75, it opened the next day at $53.54 before rising more than 28% to $68.82. Although the coin dropped down to close at $62.43, 17 August saw it reach an intraday high of $74.89 before falling back to $64.21. The SOL price broke through the $80 barrier on 27 August, shooting from a low of $72.72 to a high of $88.85 – a rise of more than 22%. Remarkably, it rose a further 14% the next day from $85.79 to $97.84, breaking $90 for the first time. SOL reached the promised land of $100 the next day, hitting an intraday high of $116.85 and the following day it managed to reach $130.01 before dropping more than 16% to close August at $108.48. That meant the cryptocurrency had jumped in value almost threefold in a month thanks, in part, to the factors mentioned above. This was a remarkable explosion that it seems no SOL prediction anticipated.
On 9 September, solana reached a new high of $214.96, and then hit a further record of $218.73 on 25 October, and a new all-time-high of $258.93 on 6 November.
So that’s the recent history of the SOL coin price. But what of the future? Let’s take a look at some of the different organisations that are offering a solana price prediction.
Solana (SOL) price prediction
WalletInvestor is bullish about its SOL coin price prediction. It says solana could reach $720.14 in a year’s time and $2,711.12 in five years.
DigitalCoinPrice’s SOL coin price prediction 2021 believes it will reach $300.80 by the end of this year. The same site thinks the SOL price could reach $424.87 in 12 months from now and then hit $394.37 in November 2023. A year from that point, the site claims it should get to $482.52 and will reach $692.89 in November 2025. November 2026 will see it at $701.73. Twelve months later in November 2027 it will be $732.04, hitting $902.88 in November 2028.
Finally, gov.capital’s SOL coin price prediction is around $611.27 on 25 November 2022. A year on, it thinks the SOL coin price will be worth about $1147.14, and on 25 November 2024, it is predicted to score around $1891.49. The same date in 2025 has a SOL coin price prediction somewhere in the region of $2840.53, and on 25 November 2026, the site predicts a SOL coin price of around $3,988.26.
Possibly. Gov.capital currently thinks it can do at some point in September 2023. However, we do need to point out that other price predictions, while bullish, are more cautious. We also need to say that predictions are very often wrong. You will need to do your research before investing – remember that cryptocurrencies are highly volatile and can go down as well as up and that you should never invest more money than you can afford to lose.
It could be anything between $634 and $1,900, depending on which prediction you follow and what part of the year you are talking about. That said, it could be worth far less, to the extent that it could follow in the footsteps of many cryptos and go out of business by then, or it could be worth more. The truth is, we don’t really know.