Can Solana Reach $500 or even 200?
Can Solana reach $500? Solana is now above $25, will it reach 500 someday?
Can Solana reach $200 again?
Latest Solana Price
Solana reached an all-time high of $259 in November 2021. Solana is down 90% from an all-time high. The two questions in the minds of investors are
- Can Solana reach $200 again?
- Will it do even better and can Solana reach $500?
Can Solana reach $200 again? The Investment Case
We evaluated Solana on performance metrics on multiple use cases, this is what we found
- DeFi – Present – Ranked 12th – Not Competitive
- Gaming – Present – Not Ranked – Not Competitive
- Payments – Not Present
- NFT- Ranked 2nd- Very Competitive
In short, unlike say Ethereum or Matic, Solana appears to be a specialist NFT focussed blockchain. It leads Cardano both in NFTs and DeFi. Yet, Cardano enjoys a Market Cap nearly 50% higher. So one of the following is true, Cardano is overvalued, or Solana is undervalued. Given that Solana crashed multiple times due to security issues as well as during the FTX crisis, one can say that the chances of Solana being undervalued are quite high.
Can Solana reach $200 again?
It is one thing to be undervalued, another to rise 9x. Our forecasts for Tesla are a 7x multiple over the next 8 years. And Tesla is a money machine while Solana is not. So at a conceptual level, it looks difficult for Solana to reach $200 again even if it crashed from that level a year ago. Here are other reasons why it will be difficult for Solana to reach $200 again
- The liquidity environment in November 2021 was unusual owing to the COVID pandemic. We are unlikely to have a similar environment anytime in the near future
- In 2021, Solana was a promising new Coin, In 2023 we have a good idea of its strengths and weaknesses, so the information available is better now and investors are able to better value the Coin. It is no more regarded as the ‘Ethereum Killer’
- Given the crash of the last 12 months, lots of Tokens are available at low prices, and use cases are improving, so Solana will be competing for mind space and cash
Still, if one were to assume 30% growth (Tesla is at about 30-40%%), Solana could reach $200 by the end of this decade. It sounds quite far off but it would be a very good investment. It could grow faster if Technology changes push the adoption of blockchains and NFT usage becomes commonplace (Like your Grandmother using a smartphone). To close, we do think even in these changed circumstances, the chance of Solana reaching $200 is moderate if not impossible.
Can Solana Reach $500?
At $500, Solana’s Market Cap would be 20% higher than Ethereum’s Market Cap today. Ethereum reached this level in about 5 years, so in Theory, Solana could easily rise to $500. However, there are some barriers
- Ethereum built a huge smart contracts base by enabling the launch of numerous ERC-20-based Tokens in the market. However, Solana has no such parallel.
- Ethereum quickly established itself as a market leader in DeFi and NFTs, Solana is just second in NFTs and a distance 12th in DeFi
- Lastly, unlike Ethereum, Solana has to contend with numerous competitors and specialists (Cardano, Matic, Tron and BNB)
Given the differing environments and competitive advantage, Solana is unlikely to find it easy to reach $500. Even if we assume Solana rises at a moderate 25% per annum, it would take Solana 14 years to reach $500. Long-term forecasts tend to be imperfect and unreliable. As things stand today, we don’t think Solana can reach $500. Should there be changes in the environment that benefit Solana, this would become a more realistic possibility.
- Solana vs Ethereum vs Cardano Social Media Sentiment Live
- Cardano Price Prediction
- Ethereum Price Prediction
- Bitcoin Price Prediction
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.