Are you wondering ‘is Solana a good investment?’ After SOL’s first major bull run, the asset has gained attention from crypto investors. But will its bullish trend continue? Keep reading to find out what Solana could be worth in 2021-2025.
Over the last six months, the cryptocurrency market has been transformed. The recent bull run has sent some big names slipping down the rankings — and brought previously obscure cryptos into the spotlight. One of these is Solana (SOL), a proof-of-history blockchain that is currently the world’s 14th largest cryptocurrency by market cap. (It was the 42nd largest back in February 2021).
At the time of writing, the price of 1 SOL is $44.78 and the asset’s market capitalization rate is $11,803,250,642. It’s overtaken competitors such as Stellar, THETA, and TRON to secure its position, but it’s still relatively unknown. So, if you’ve recently discovered Solana for the first time, how does this crypto work — and more importantly, could it be a good addition to your portfolio?
To find out more, you’re in the right place. In this article, we’ll explain what exactly Solana is and how it works. Then, we’ll guide you through some of the most compelling cryptocurrency predictions to try and answer the question ‘is Solana a good investment?
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- What is Solana (SOL) and How Does it Work?
- Short-term Solana (SOL) Price Predictions: 2021
- Long-term Solana (SOL) Price Predictions: 2022-2025
- How Has the Price of Solana (SOL) Changed Over Time?
- What Factors Can Affect the Price of Solana (SOL)?
- Key Points
- Solana (SOL) Price Prediction FAQs
What is Solana (SOL) and How Does it Work?
Billed as the world’s first web-scale blockchain, Solana is a Practical Byzantine Fault Tolerance-based (PBFT) proof-of-history (PoH) system. This may be a bit of a mouthful, but put simply, a PBFT system is one that has been designed to minimize the risk of malicious nodes (another word for the devices or servers that make up the network).
It operates on the principle that the total number of malicious nodes must always be less than one-third of all the nodes in the system. As the number of nodes increases, this means that the system becomes more secure. Solana isn’t the only cryptocurrency that uses a PBFT system — Ripple, Stellar, and Hyperledger are all based on this type of blockchain too.
Because PBFT networks become more secure as they grow, they are a potential solution to the problem of scalability. Scaling up the blockchain for global adoption has been a problem ever since the launch of Bitcoin — and in 2017, the Swiss company Solana Labs built Solana to solve this issue. (The Sol tokens were only released to the public in April 2020).
As a third-generation cryptocurrency, Solana has been developed to overcome some of the key problems that earlier cryptos have had to battle. As well as being much more scalable, Solana is also capable of processing transactions far more quickly than platforms such as Bitcoin and Ethereum. While Bitcoin can process just 4.6 transactions a second (TPS), the Solana blockchain promises to process a staggering 50,000 TPS. That’s over 10,000 more than BTC!
Another feature that sets Solana apart is its development of the PoH concept. Most cryptocurrency networks use either a proof-of-stake (PoS) or proof-of-work (PoW) concept. Solana’s proof-of-history consensus is sometimes referred to as a blockchain clock, and it works by encoding timestamps into messages and transactions. This enables users to create historical records that prove exactly when data is added to the blockchain.
So, where does the Sol token fit into this? SOL is the native cryptocurrency of the Solana platform. You can use Sol tokens to carry out micropayments within the network (these are known as lamports) and it’s also possible to stake your SOL funds to earn rewards.
The Solana network and token aren’t aimed towards your average retail investor. The platform was designed for blockchain engineers and software developers who want to create decentralized apps (dApps) or other blockchain projects. That said, it’s possible to buy SOL tokens on cryptocurrency exchanges such as Binance, making it a potential addition to your investment portfolio.
Solana may have risen up the crypto rankings, but is SOL a good investment? Discover some of the top cryptocurrency predictions for the price of Solana in 2021 and beyond.
Short-term Solana (SOL) Price Predictions: 2021
Solana price prediction for 2021
Because SOL has only been on the market for little over a year, many people are keen to find out whether its recent bull run is sustainable. According to CoinMarketCap, the SOL token’s current all-time high (ATH) is $45.8623, which it hit on 26th April 2021. Is it likely to achieve a new ATH before the year is out?
According to Wallet Investor, the answer is a resounding yes. This investment analysis platform is incredibly optimistic about the short-term prospects of Solana, believing that SOL could gain approximately $20 in value every three months. By the end of December 2021, even its most conservative estimates place Solana SOL at a price of $96.623.
In one year from now, the price of Solana could have grown to around $120. Its average and maximum predictions suggest we could see prices of between $107.679 and $118.113 by 31st December 2021, and between $137.677 and $155.594 by the start of May 2022. If these predictions are true, Solana could gain almost $100 over the course of a year.
Cryptocurrency Price Prediction is even more optimistic about the future of Solana. This platform believes that the ongoing release of Sol tokens will cause the value of the cryptocurrency to increase hugely over its first few years of circulation.
According to its analysis, the Solana asset will almost double in price between May and June 2021, jumping up from $69.78 to $129.53. Although Solana did double in value in January this year — and again in April — this growth rate would be all the more impressive as it would take SOL pass the $100 resistance point.
Solana Price Predictions For 2021:
SOL Price Prediction
Not only does Cryptocurrency Price Prediction believe that Solana will exceed $100, but it also expects the asset to hit both $200 and even $300 before the end of 2021! Its staggering forecast has predicted that the price of SOL will increase by over $330 over the next seven months.
This may seem unrealistic, but as the Sol token has only been in circulation since 2020, there’s no knowing how successful it could be in its first few years.
Unfortunately, Trading Beasts has given a much more conservative prediction. This platform doesn’t expect the price of Solana SOL to exceed $55.
As we can see in the table below, it predicts modest month-by-month growth. While Cryptocurrency Price Prediction expects to see a series of rapid bull runs, Trading Beasts doesn’t think that Solana will significantly outstrip its current ATH of $45.862333.
Solana Price Predictions in 2021:
|Month||Minimum Price||Maximum Price||Average Price||Change|
As the current price of 1 SOL is $43.78, this prediction hardly paints the bullish picture we saw from both Wallet Investor and Cryptocurrency Price Prediction.com. If this forecast is correct, it means that Solana will reach a new ATH of $53.397 — however, this will be just $8 higher than its current record.
So, is Solana a good investment in 2021?
The short-term Solana price predictions suggest Solana could be a safe investment in 2021. None predicts that SOL will close 2021 at a lower price than its current value, which should be a reassuring sign to investors.
What Will Happen to the Price of Solana (SOL) in 2021?
According to the predictions, the price of Solana could reach a maximum value of between $73.397 and $396.94 by the end of December 2021! This is a huge bracket, however, it might be an encouraging sign that two of the three predictions above believe SOL could hit (and potentially surpass) $100.
Will the Price of Solana (SOL) Go Up in 2021?
Yes, it seems probable that the price of Solana will go up in 2021, although the forecasted amounts vary significantly. Wallet Investor and Cryptocurrency Price Prediction both believe that the Solana asset will hit a series of new ATHs over the course of the next year.
Trading Beasts isn’t so optimistic, but still expects to see the crypto token close the year at a higher price.
Additional predictions for the price of Solana (SOL) in 2021 include:
- Coin Price Forecast: $307.58
- Long Forecast: $123.93
- Market Realist: $30
- Digital Coin Price: $63.85
- Coingape: $50
- Crypto Rating: $50.39
The key question now is whether its long-term prospects are as promising as its short-term ones.
Read Also: Why Solana Is Going To Explode This Year
Long-term Solana (SOL) Price Predictions: 2022-2025
What are crypto experts forecasting for Solana in 2022 and beyond?
Now that we’ve seen what could happen to the price of Solana in 2021, let’s look ahead to some of the long-term predictions. Considering the Solana asset has only been on the market since 2020, we don’t have much past data to go on. That means it’s crucial to look at the technical analysis to try and answer the question ‘is Solana a good investment?’
Our first long-term price prediction comes from Coin Price Forecast. Like Cryptocurrency Price Prediction, this platform is incredibly optimistic about the short and long-term prospects of Solana.
According to its analysis, Solana could reach a top price of $307.58 before the end of 2021. This could rise to $515.44 by the end of 2022, $853.54 by the end of 2023, $1,079.74 by the end of 2025, and $2,190 by the very end of 2030.
And it won’t stop there, as we can see in Coin Price Forecast’s table below:
Solana SOL Price Predictions 2021-2032
These bullish predictions suggest that Solana is in for a bright future. In a world where only Bitcoin and Ethereum have passed the elusive $1,000 mark, Solana’s potential growth would set it apart from a lot of its competition. The fact it went from being the world’s 42nd largest crypto by market cap to the world’s 14th largest in just two months shows the asset is no stranger to fast-paced growth. But are these predictions too good to be true?
Coin Price Forecast expects Solana to hit $1,000 as early as 2024. For the most part, this number will continue to rise steadily, despite a small set-back between 2024 and 2025 (from $1,134.32 to $1,034.50).
If you’re wondering ‘what will Solana be worth in 2030’, this tanalysis is an encouraging prospect: Coin Price Forecast believes that the price of Solana SOL token could be worth a staggering $2,190.11 by 2030’s year end.
The prediction from Digital Coin Price may seem a little underwhelming when contrasted with the one above, but it’s still an encouraging sign.
The investment analysis site believes that Solana will keep rising year-on-year, although it does predict a reasonably high level of volatility along the way.
Over the next 10 years, Digital Coin Price expects Solana to hit the following milestones:
- 2021: $60.25
- 2022: $79.18
- 2023: $88.03
- 2024: $106.71
- 2025: $129.57
- 2026: $156.01
- 2027: $149.6
- 2028: $190.74
- 2029: $225.30
- 2030: $260.50
In fact, Digital Coin Price thinks the Solana price will be $60.25 in 2021, rising to $80 by the end of 2022, $88 by the end of 2023, $106 by the end of 2024, and an impressive $130 by the end of 2025.
If you’ve been wondering ‘will Solana SOL reach $100?. Digital Coin Price expects the asset to hit the $100 milestone by 2024, with the price continuing to climb all the way up until 2030.
According to its predictions, Solana isn’t set to hit $200 any time soon — a stark contrast to Coin Price Forecast’s belief that Solana SOL will hit $1,000 before 2025. However, it does show that the price of Solana will ultimately follow a bullish trend, despite the volatility.
This volatility is likely to increase from mid-2023 onwards, with a series of notable price swings over the next few years.
For example, Digital Coin Price believes the price of Solana SOL will fall from $107.69 in August 2023 to just $77.33 in September 2023. Between December 2024 and February 2025, the price could move from $103.25 to $143.88 and back down to $112.37. Interestingly, however, Digital Coin Price expects this volatility to stop in 2027. As we can see from the graph above, it believes the price of SOL could plateau over the course of 2027, before coming back stronger in 2028.
Long Forecast’s predictions are a little higher than those from Digital Coin Price. This platform does expect to see the price of Solana hit $200 by 2025, although it also expects to see a brief bearish adjustment towards the 2022-2023 transition.
After predicting a top price of $123.93 for Solana SOL in 2021, Long Forecast believes that SOL will dip down to $99.41 by the end of December 2022 — its lowest price since September 2021, according to its analysis. This will fall to $93.25 in January 2023, but thankfully, Long Forecast doesn’t expect the bearish trend to last long.
By the end of 2023, the price of Solana will be $149, after briefly surpassing $200 in the middle of the year. This will pave the way for the predictions we can see in the table below.
Solana SOL Price Predictions In 2024:
Solana SOL Price Predictions In 2025:
In fact, Long Forecast thinks Solana price will be valued at $124 in 2021, rising to $177 by the end of 2022, $220 by the end of 2023, $155 by the end of 2024, and an impressive $241 by the end of 2025.
By February 2025, the price of Solana will remain safely above $200. Based on the numbers we can see for March-May 2025, it seems likely that the asset could hit $300 before the end of the year.
Again, this is far cry from the forecasts we saw from Coin Price Forecast and Cryptocurrency Price Prediction.com — but it’s still an encouraging prospect that suggests SOL will continue to gain value over the next five years.
What Will Happen to the Price of Solana (SOL) in 2025?
The price of Solana is likely to increase in 2025 and beyond, although it may experience a brief bearish adjustment if Long Forecast’s predictions are correct. Some of the predictions suggest that we could see major price milestones such as $1,000 and even $2,000 before in the run-up to 2030. While others aren’t so optimistic, they still claim that the price of Solana will hit a series of new ATHs over the course of 2022-2030.
Will the Price of Solana (SOL) Go Up in 2022-2025?
Yes, the predictions suggest that the price of Solana will go up in 2025. Both Coin Price Forecast and Digital Coin Price expect the Solana value to go from strength to strength, potentially hitting $1,000-2,000 by 2025.
The price of Solana has increased dramatically this year, and it shows no sign of slowing down. Analysts estimate that the value of Solana SOL has plenty of room for growth and investing in Solana could be a smart decision for the long-term. Therefore, it could be a good time to buy and hold Solana while the digital coin is performing very well.
Additional predictions for the price of Solana (SOL) in 2022-2025 include:
- Wallet Investor: $236.179
- Trading Beasts: $76.896
- Long Forecast: $177.05
- Crypto Newsz: $74
- Coinskid: $107.70
- Wallet Investor: $366.624
- Trading Beasts: $98.435
- Crypto Newsz: $85
- Coinskid: $111.35
- Wallet Investor: $504.434
- Trading Beasts: $116.028
- Crypto Newsz: $99
- Coinskid: $144.70
- Wallet Investor: $646.284
- Coinpedia: $120
- Crypto Newsz: $100.030
- Coinskid: $213.48
Read also: Could Solana Be a Millionaire Maker Coin?
Conclusion: Solana (SOL) Price Prediction Forecast
The below prediction figures outline some of the Potential high and low of Solana (SOL) price prediction forecasts in 2021, 2022, 2023, 2024 and 2025 offered by technical analysts and industry experts.
Would you consider buying SOL?
How Has the Price of Solana (SOL) Changed Over Time?
As we mentioned earlier, the Sol token has only been on the market since April 2020. This means there isn’t much historical price data for us to go on. Upon entering the market, the price of SOL remained relatively stagnant, hovering between $0.5 and $0.8 until July 2020. After hitting the $1 mark, the Sol token briefly gained momentum, rising to a price of $4.736706 on September 1st. Although the price subsequently dipped back down to under $2, Solana has never fallen below $1 again.
Because of its release date, Solana has largely missed events such as the worldwide coronavirus crash, which shook the market in March 2021. Instead, its first real price change occurred during the market-wide bull run that started in late 2020. Although Solana was initially slow to get caught up in the trend, it started gaining value quickly towards the end of January 2021. By February 25th, it was worth $16.109626 — after gaining approximately $7 in just one week.
From then onwards, the price of Solana has gone from strength to strength. Its current ATH is $45.862333, which it hit on 26th April 2021. According to the predictions, it could be set to outstrip this record in the next few years.
We can see how the price of Solana has changed since April 2020 by looking at the graph below, which was published by Coin Market Cap:
What Factors Can Affect the Price of Solana (SOL)?
In addition to analysing Solana’s historical prices, it’s important to identify the key factors that could affect its price in the future. This will make it easier for you to make your own predictions based on current cryptocurrency trends and ultimately find an informed answer to the question ‘should I invest in Solana?’
Let’s take a look at the top factors that can affect the price of SOL.
1. Supply and Demand
The maximum number of Sol tokens is capped at 489 million. (This is far greater than other cryptocurrencies such as Bitcoin, which is capped at ‘just’ 21 million). At the time of writing, approximately 260 millions have already entered circulation. According to the Solana Foundation, the total number of tokens have been distributed in the following ways:
- 16.23% went towards the initial seed sale
- 12.92% went towards a founding sale
- 12.79% were distributed amongst the network team members
- 10.46% were allocated to the Solana Foundation
This leaves approximately 50% of the tokens. Of these, some have been allocated for private or public sale, while others haven’t yet entered the market. As the number of available tokens starts to decrease over time, the demand for SOL is likely to be greater than the available supply, which will drive up the price of the currency.
2. Network Outages
Another factor that could affect the price of SOL is the likelihood of potential outages. According to an article published by FX Street, approximately 15% of the active network stake for Solana is housed in the Hetzner Falkenstein data center in Germany. Back in March, the company scheduled maintenance downtime between the 2nd and 5th, prompting the Solana team to press network validators to move their nodes during the outage.
As the bull run starts to slow down, some investors are worried that such a high concentration of nodes in one place could have an adverse effect on the cryptocurrency, if a future outage occurs again.
Is Solana (SOL) a good investment?
Solana has indeed proven to be a very good investment so far, with the price expected to increase further in the long run. According to experts, the value of Solana looks bright, Solana might prove to a wise investment.
Put simply, Solana is a low-risk investment with lots of potential rewards. It’s something you should definitely do some research before you consider adding SOL to your portfolio.
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- Solana is a Practical Byzantine Fault Tolerance-based (PBFT) system that has pioneered the proof-of-history (PoH) concept.
- The Sol token entered the market in April 2020, making it a fourth generation cryptocurrency.
- At the time of writing, the price of 1 SOL is $43.78 and the asset’s market capitalization rate is $11,803,250,642.
- Solana is currently the world’s 14th largest crypto by market cap, after climbing from the 42nd spot back in February.
- By the end of December 2021, Wallet Investor believes that Solana will be worth a minimum of $96.623. That’s more than double the token’s current price of $43.78.
- According to Cryptocurrency Price Prediction.com, the asset will almost double in price between May and June 2021, jumping up from $69.78 to $129.53.
- Trading Beasts expects Solana to be worth a modest $53.397 by December 2021.
- Coin Price Forecast has given one of the most bullish predictions, expecting SOL to be worth $1,079.74 by 2025.
- Digital Coin Price believes that Solana could be worth $129.57 by 2025.
- Long Forecast’s prediction for 2025 isn’t complete, but by May, it clearly expects the price of 1 Sol token to be safely above $200.
- Factors that can affect the price of SOL include the relationship between supply and demand and the likelihood of potential network outages.
We hope that you’ve found this article helpful. Whether you’re interested in adding SOL to your portfolio or simply want to stay ahead of the cryptocurrency trends, it’s clear that Solana has shot to prominence over the last few months. Will its bullish trend continue?
Is Solana a DeFi?
Solana is a decentralized network that supports the development of new DeFi tokens.
Is Solana a good investment?
According to the predictions, Solana could potentially be a good investment. However, it’s worth noting that it’s only been on the market a short time, which means we could be lacking a clear proof of concept.
As always, Crypto Price Predictions discussed in this article are the views of the industry analysts. As such, We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.