Is Solana (SOL) a good investment? Solana has consistently ranked in the top 10 cryptocurrencies, capturing the interest of many investors. If you’re wondering whether it’s a suitable long-term asset for your portfolio, this article will provide investors with an in-depth Solana price prediction for 2023-2031.
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.
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 2023-2031
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.
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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 (SOL) Price Prediction 2023
Despite the congestion on Solana’s network, the platform’s transaction speeds and success rate are comparable to its competitors. The success rate of Solana’s transactions has consistently remained above 75% in most cases.
If Solana can overcome the challenges in the cryptocurrency space and resolve the consensus issues, the price of SOL could rise above $30.13. However, if the asset continues to face inflationary pressures and other challenges, the price may stabilise around $24.10.
Solana (SOL) Price Prediction 2024
Solana’s (SOL) Price Projection for 2024 indicates that the cryptocurrency could reach a maximum price of $56.23, while the average price throughout the year is expected to hover around $50.21. In the event of a bear market, the minimum price forecast for SOL in 2024 is $44.18.
Solana (SOL) Price Prediction 2025
Looking ahead to 2025, Solana is anticipated to experience substantial growth as cryptocurrencies gain recognition across various industries. SOL could surge to as high as $76.32, with an average price of approximately $70.29. The projected minimum price for SOL in 2025 stands at $64.27.
Solana (SOL) Price Prediction 2026
In 2026, as capital flows into the crypto market, Solana’s price could reach a maximum of $96.40, with an average price of $90.38. In the event of a sell-off, the projected minimum price for SOL in 2026 is $84.35.
Solana (SOL) Price Prediction 2027
By 2027, considering the increasing adoption of SOL globally, Solana’s price could reach a maximum of $116.48, with an average price of $110.46. The projected minimum price for SOL in 2027 is estimated at $104.43.
Solana (SOL) Price Prediction 2028
The year 2028 is expected to see continued growth in Solana’s adoption as regulators increasingly accept the permanence of cryptocurrencies. Investors may witness SOL reaching a maximum price of $136.57 in 2028, with a projected minimum price of $124.52. The average price for 2028 is around $130.54.
Solana (SOL) Price Prediction 2029
Looking ahead to 2029, the previous years’ growth trends suggest another significant bull run, potentially driving SOL to a maximum price of $156.65. The average price for SOL in 2029 is to be $150.63, with a minimum price of $144.60 based on technical analysis.
Solana (SOL) Price Prediction 2030
For 2030, market sentiment suggests that SOL could rally towards $176.73. Without strong support, the average price for Solana in 2030 is expected to be approximately $170.71, potentially bottoming out at $164.68.
Solana (SOL) Price Prediction 2031
The year 2031 is anticipated to be a milestone for Solana, with the expectation of a new all-time high (ATH) price of $196.82. The minimum price projection for SOL in 2031 is $184.77, while a worst-case scenario would see SOL ending the year at $190.79.
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 $11 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 o enhance 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 2023?
Despite the recent downturn in the crypto markets, there are strong indications of robust organic growth of SOL within the network. Both DeFi and NFT usage have increased significantly in the past few months. However, Solana is still grappling with the aftermath of last year’s price collapse, influenced by the FTX connection and the bear market. Given the uncertainties surrounding the future, investing in Solana 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.
Can $SOL rebound to $50?
The SOL price could regain levels above $70 in the first quarter of 2024, indicating a potential rebound to $50. However, note that crypto prices are subject to market volatility and can fluctuate. Therefore, it’s advisable to consider various factors and conduct thorough research before making any investment decisions.
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.