SOL coin price prediction: What will SOL be worth?

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SOL reached an all-time high in November but has plunged in value since. What is the latest SOL coin price prediction?

Contents

SOL, the native coin of the Solana blockchain, boomed last year. By 6 November, a new all-time high of $260.06 was recorded. However, by 10 June 2022 the token was trading at $38.01. Let’s take a look at what’s driving the price fluctuations, and what the Solana price prediction might be.

From the Solana whitepaper

The founding document, Solana: A new architecture for a high performance blockchain, was published in November 2017, and is 32 pages long. The whitepaper proposed a new blockchain architecture, called Proof-of-History (PoH), a technique for keeping time between computers that do not trust one another. 

It goes on to say: “Current publicly available blockchains do not rely on time, or make a weak assumption about the participants’ abilities to keep time. Each node in the network usually relies on their own local clock without knowledge of any other participants’ clocks in the network.

“The lack of a trusted source of time means that when a message timestamp is used to accept or reject a message, there is no guarantee that every other participant in the network will make the exact same choice. The PoH presented here is designed to create a ledger with verifiable passage of time, i.e. duration between events and message ordering. It is anticipated that every node in the network will be able to rely on the recorded passage of time in the ledger without trust.”

Crypto crashes

The cryptocurrency market saw crashes in May and September 2021, and May 2022. Markets naturally correct themselves and, over time, the prices readjust. This is true of SOL.

The initial positive performance in 2022 could have been attributed to nonfungible token (NFT) markets-related news and a marketwide bounce towards the end of the first quarter. By 2 April, the token met a $143.02 peak. By the end of the first quarter, Solana became the second-largest protocol by NFT sales volume, second only to Ethereum. Solana had also experienced continued growth in network infrastructure, network usage and the overall ecosystem over the first quarter.

However, the lows of $38.05 on 12 May were ultimately catalysed by a long-running bear market and a mass crypto sell-off, with fears of a crypto winter looming large over the markets. SOL was no exception to the plunge and lost almost half of its value over a seven-day period. However, there has been some recovery since this price point. As of 10 June, the coin was trading at $38.01.

How PoH works in the Solana ecosystem

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 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 the PoH (Proof-of-History) method. 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 what might be able to challenge ether in the world of altcoins.

Ignition fires up in 2021: Initial surges

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. In turn that 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 Web 3.0, which focuses on things such as decentralised autonomous organisations (DAOs), decentralised apps (DApps) 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 a multinational banking company is taking 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 were prizes worth $185,000 in this category. Finally, both gaming (sponsored by Forte) and NFT (sponsored by Metaplex) categories also carried prizes of $120,000 each.

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The whole event proved to be a good move by Solana because it expanded interest in the blockchain and also helped push up the price of the SOL coin.

The all-time high and beyond

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, SOL 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 $260.06 on 6 November. 

Solana’s rise to its all-time high in November came just after its venture capital arm Solana Ventures, Lightspeed Venture Partners and FTX set up a new investment fund called GameFi. The $100m-investment initiative is dedicated to Web3 gaming. As Web3 gaming has rocketed in popularity, the coin price rose substantially as more interest was generated. Increased network participation in the NFT space was also paramount in its price rally, and Solana NFT Marketplace went live on FTX on 11 October 2021. 

However, the end of last year and into January were difficult months for cryptocurrencies, and Bitcoin was down by almost a fifth over the course of December. SOL was no exception, and by 23 December it had lost almost a third of its value and the coin was valued at $178.93. Worse news was to come after an exploit of the Wormhole bridge incurred degraded network performance in February.

However, SOL lead the way in Web 3.0 gaming in 2022. According to FXStreet, Amio Talio, the founder of UK-based Paradox Studio, said: “Games like Star Atlas on the Solana blockchain offer users the opportunity to earn cryptocurrency, increasing their wallet balance. This makes it more lucrative compared to games on other platforms.”

The rally in early April started after Coinbase Wallet added support for SOL and other Solana-based blockchain tokens on 18 March. There were also high hopes for OpenSea’s integration of the Solana network, but as trading volumes began to slide, so did investor confidence. However, the token has been on a downtrend since the brief peak of $143.02 in early April. Exacerbated by the market-wide crash, the token went into a freefall in May and lost almost half of its value. As of 10 June, the token is trading at $38.01.

Increased investor confidence in cryptocurrencies in 2022 might help kickstart another bull run, but at this stage an immediate recovery to previous highs looks unlikely. However, renewed confidence in the crypto market might help Solana to be seen as a viable, cheaper alternative to Ethereum. Solana, like all other crypto, is also at considerable risk of collapse should it not be able to compete in the rapidly maturing digital asset space.

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 $124.88 in a year’s time and $444.47 in five years’ time.

DigitalCoinPrice’s SOL coin price prediction 2022 believes it will reach a 32% increase in July and be valued at $50.42. The same site thinks the SOL price could reach an average of $53.80 in 2023 and then $59.46 in 2024. In 2025, the coin might be worth $72.47 while 2026 will see it at $69.71. In 2027, it might be worth as much as $93.92, before rallying to $125.32 in 2028. The SOL coin price prediction for 2030 is $173.02.

Finally, Gov.Capital’s SOL coin price prediction is around $288.07 a year from now. The SOL coin price prediction for 2025 is for the coin to be worth over $1,000 by June of that year, the most optimistic projection of our forecasts. 

FAQs

Possibly. Gov.Capital currently thinks it can surpass that mark in June 2025. However, 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.

According to the digital forecasters, the coin could be $72.47 (DigitalCoinPrice) or between $915 and $1,427 (Gov.Capital), depending on which price predictions you follow. 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. 

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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