Is Solana (SOL) a good investment? Solana has consistently ranked in the top 10 cryptocurrencies, capturing the interest of many investors. Recently, the SOL token’s price has surged to above $100 with ongoing positive market sentiment. If you’re wondering whether this fifth-largest crypto is a suitable long-term asset for your portfolio, this article will provide investors with an in-depth Solana price prediction for 2024-2030.
What is Solana (SOL)?
Solana is one of the most popular cryptocurrencies among the vast array of over 10,000 coins. Developed by Anatoly Yakovenko, Solana operates on a decentralised network using a blockchain ledger. This ledger manages and records all currency transactions, functioning like a continuous and comprehensive receipt. The network itself validates these transactions and ensures the integrity of the data.
The decentralised nature of Solana’s platform enhances its resilience, enabling users to engage in transactions without the requirement of an intermediary. As the fastest blockchain globally, Solana claims the ability to verify an impressive 65,000 transactions per second, all at the cost of less than a penny each.
While viewed as a form of currency, it is essential to understand that cryptocurrencies such as Solana can serve as tokens powering various applications on their respective platforms. Solana, for instance, can support smart contracts, decentralised finance apps, NFTs, and more.
As of September 2022, approximately 353 million sol were in circulation. Like many other coins, Solana implements a controlled annual issuance, rewarding coins to those who support the network. Initially, Solana experienced an 8% yearly increase in supply, but this rate gradually diminished by 15% each year until it stabilised at a fixed constant issuance rate of 1.5% annually.
This issuance structure starkly contrasts with other prominent cryptocurrencies like Bitcoin, which has a total fixed supply of 21 million coins, and Dogecoin, which lacks any limitations on issuance.
Significant Updates on Solana (SOL)
Solana’s Remarkable Surge Indicates Ethereum Faces a Strong Contender
Solana (SOL) gained significant attention in 2021 as a potential Ethereum (ETH) competitor, promising a faster and more cost-effective platform for transactions and decentralised finance (DeFi) applications. However, in 2022, SOL faced challenges, dropping below $10 amid broader market struggles and negative associations with Sam Bankman-Fried (SBF). Yet, a remarkable turnaround occurred in October, propelling SOL back into the $20s and eventually surpassing $100. Currently, SOL holds the fifth position in the cryptocurrency market, reaching a market cap of $47 billion.
The surge in SOL’s value coincided with increased on-chain activity on the Solana blockchain, nearing the trading volumes of Ethereum-based decentralized exchanges like Uniswap. Despite Ethereum’s continued dominance in total value locked in its ecosystem, which stands at $29 billion compared to Solana’s $1.5 billion, recent events suggest Solana is emerging as a formidable competitor in the layer-1 blockchain space, particularly driven by speculation and interest in meme coins.
Ondo Finance Broadens Tokenized Treasury Offerings on Solana with Real-World Asset Integration
Ondo Finance, a tokenized real-world asset (RWA) platform, has expanded its offerings to the Solana blockchain, introducing U.S. Treasury-backed tokens like U.S. Dollar Yield (USDY) and a tokenized version of BlackRock’s short-term Treasury bond ETF, OUSG. This expansion follows Circle’s introduction of the euro-backed stablecoin EURC to the Solana ecosystem. Tokenized U.S. Treasuries have driven this year’s tokenization surge, with Ondo now the second-largest issuer, reflecting the broader trend of bringing traditional assets onto blockchain networks. The combined market cap of tokenized treasuries has soared to over $760 million, driven by increased interest in blockchain efficiency and reduced costs. Ondo anticipates users leveraging its tokens for decentralized exchange trading, collateral in lending, and payment settlements within the revived crypto market and resurging DeFi activity. Nathan Allman, CEO of Ondo Finance, highlighted the Solana ecosystem’s resilience and growth potential, emphasizing the alignment with Ondo’s strategic expansion and the potential for innovative decentralized finance applications leveraging tokenized U.S. Treasuries.
Solana Trader T/urns $62 Investment into $2 Million Jackpot with Dragon-Themed Memecoin
A Solana trader turned a $62 investment into a $2 million jackpot by investing in Silly Dragon (SILLY), a dragon-themed memecoin on the Solana blockchain. Starting with just 1.5 SOL, the trader exchanged 1 SOL for 43 million SILLY tokens five minutes after the memecoin’s trading debut. Over 22 days, the SILLY token’s value surged, reaching a market capitalization of over $123 million. The trader has already withdrawn $528,000, leaving $1.5 million worth of tokens in the wallet. Despite the impressive trade, some community members suspect insider trading, questioning the likelihood of such a trade without inside information. Silly Dragon was created following a tweet by Solana CEO Anatoly Yakovenko, and its website emphasises the coin’s entertainment and educational purposes.
Solana (SOL) Price History
After the update on May 26, 2022, SOL experienced a price drop from $47.98 on May 25 to $43.49 on May 26 and further down to $40.98 on May 27. On May 11, SOL fell below $50 due to the impact of the collapse of Terra UST and LUNA tokens and a 20-year high in the US Dollar Index (DXY).
The token displayed increased volatility, reaching a low of $26.06 on June 14, 2022. It then rallied to $47.10 on July 19 but failed to surpass the $50 level, slipping back to $42.40 at the end of July. The price remained stagnant before collapsing to $12.51 on November 9, 2022, significantly lower than its all-time high of $260.06. After briefly reaching $18.81 on November 10, the price dropped to a low of $15.51 on November 11 following the FTX bankruptcy announcement.
SOL traded between $11 and $15 from mid-December before experiencing a substantial price drop, hitting $8.14 on December 29, 2022. However, Vitalik Buterin’s optimism about Solana’s future and interest in the Solana-based coin BONK led to a partial recovery. It rallied to $17.36 on January 9 but settled around $16.10 on January 12.
On January 14, SOL surpassed $20 for the first time since November, maintaining its position above that level. It peaked at $26.65 on January 29 before settling around $24.50 on February 3, 2023. In February, the announcement of the Helium (HNT) protocol’s migration to Solana on March 27 boosted the price to $26.93 on February 20.
In March, the collapse of Silvergate Bank affected the crypto market, causing SOL to drop to a low of $16.12 on March 10. It recovered to $23.83 on March 20, but even the news of surpassing Ethereum in active wallets couldn’t prevent SOL from trading around $20.70 on April 6, 2023. However, on April 11, SOL witnessed a more than 10% increase, opening at $20.88 and closing at $23.02, before peaking at $25.46 on April 14. By April 17, the price slightly declined to around $24.85.
At that time, the circulating supply of SOL was slightly over 392.3 million, with a total supply of approximately 539 million. This gave the coin a market cap of around $9.7 billion, positioning it as the 10th-largest cryptocurrency by market capitalisation, according to CoinMarketCap data.
Solana Price Prediction 2024-2030
Our Solana market forecasts are generated through the utilisation of machine-based algorithms that analyse multiple technical indicators, including the relative strength index (RSI), moving average convergence divergence (MACD), moving average (MA), average true range (ATR), and Bollinger Bands (BB). These indicators provide valuable insights into the market trends and predict future price movements for Solana.
| Years | Avg Price | Lowest Price | Highest Price |
|---|---|---|---|
| 2024 | $86.92 | $69.53 | $104.30 |
| 2025 | $101.59 | $81.27 | $121.90 |
| 2026 | $118.73 | $94.98 | $142.48 |
| 2027 | $138.77 | $111.01 | $166.52 |
| 2028 | $162.18 | $129.75 | $194.62 |
| 2029 | $189.55 | $151.64 | $227.46 |
| 2030 | $221.54 | $177.23 | $265.85 |
Due to the high volatility of the crypto market, predicting future price points for Solana can be challenging, as numerous factors influence it. Therefore, the predictions on our website are not intended as financial advice, and you conduct your research. It is always advisable to consult with a financial advisor before making any investment decisions.
Solana 2024 Price Forecast: According to our analysis, the anticipated price range for Solana in 2024 is expected to oscillate between $69.53 and $104.30. The average price projection for SOL during this year is approximately $86.92.
Solana 2025 Price Outlook: Looking ahead to 2025, our analysis suggests that Solana’s price may fluctuate between $81.27 and $121.90, with an average SOL price of around $101.59.
Solana 2026 Price Prediction: In 2026, Solana’s price is projected to vary within the range of $94.98 to $142.48, and the average price of SOL is estimated to be approximately $118.73.
Solana 2027 Price Projection: For the year 2027, our analysis indicates a potential price range for Solana between $111.01 and $166.52, with the average SOL price expected to be around $138.77.
Solana 2028 Price Anticipation: Moving into 2028, the projected price range for Solana is estimated to be between $129.75 and $194.62, and the average SOL price is forecasted to be approximately $162.18.
Solana 2029 Price Projection: In 2029, Solana’s price is anticipated to fluctuate between $151.64 and $227.46, with an average SOL price of around $189.55.
Solana 2030 Price Forecast: Looking further into the future, our analysis for 2030 suggests a potential price range for Solana between $177.23 and $265.85, and the average SOL price is expected to be around $221.54.
Is Solana A Good Investment?
Solana is a highly promising investment due to its fast transaction speed and low fees. It offers convenience and cost-effectiveness, making it an attractive choice for users. With a market cap of $47 billion and high trading volumes, Solana is one of the most liquid cryptocurrencies and retains a strong market presence. Solana’s scalability is impressive, capable of processing up to 5,000 transactions per second.
Solana has emerged as a significant player in the NFT market, with a billion dollars in NFT sales and the ability to create NFT projects with utility. Staking on Solana is a valuable passive income strategy, offering dynamic rewards based on supply and demand. The network’s ecological advantage, achieved through its staking-powered consensus mechanism, appeals to those concerned about environmental impact.
However, Solana does face significant challenges in the areas of decentralisation and stability. The project needs to attract a more diverse set of validators and distribute its token supply to a wider range of investors to address concerns about centralisation. Besides, the team must implement various solutions to improve Solana’s network stability, contributing to enhancing Solana’s overall performance.
If you are a long-term investor, BTC price prediction and ETH price prediction may be subjects of your great interest. You can also read our price forecasts of other coins’ prices to closely monitor the trends and developments in the space.
FAQs About Solana (SOL)
What is the future of Solana?
Solana’s fate is closely tied to the overall performance of the cryptocurrency sector. When considering an investment in SOL, you need to employ a suitable strategy. This investment type may not be ideal for individuals with an asymmetric risk profile. Nonetheless, it presents an excellent investment opportunity for those with a high-risk tolerance and strong financial standing. Apart from its speculative nature, SOL provides exposure to global technology and a continuously expanding ecosystem.
Is Solana a good buy in 2024?
Based on the analysis of the indicators, SOL presents an intriguing opportunity for investors. The recent significant surge to above $100 and the consistent bullish momentum, coupled with high trading volumes and a strong RSI reading, suggests robust market sentiment. Given the uncertainties surrounding the future, investing in Solana, however, should only be considered if you are comfortable with a heightened level of risk.
Where to buy Solana in Australia?
SOL is a highly renowned coin with a substantial market capitalisation, making it readily available on numerous crypto exchanges in Australia. While most crypto exchanges employ robust security measures, opting for platforms registered with AUSTRAC offers the added advantage. Some AUSTRAC-registered trading platforms in Australia include CoinSpot, Swyftx, Digital Surge, and eToro Australia. Read our CoinSpot review for further details.
Should I purchase SOL?
Solana is a high-performance blockchain platform renowned for its remarkable scalability, rapid transaction speeds, and cost-effectiveness. Its distinctive architecture, expanding ecosystem, and commitment to environmental sustainability make it an appealing choice for users and developers. While Solana’s scalability and fast transactions offer potential for long-term growth, it is crucial to acknowledge the impact of competition, limited adoption, and technical hurdles on its market position.
How is Solana taxed in Australia?
The Australian Tax Office (ATO) recognises Solana as an asset, requiring individuals to report any SOL transactions, purchases, sales, or earnings during the fiscal year when filing taxes. Investors must declare profits from SOL as capital gains, while losses can be used to reduce tax liability or offset future gains. The classification becomes more intricate if you engage in frequent crypto trades as a professional trader. To simplify tax reporting, refer to our guide on crypto tax in Australia.
