Will Solana Recover back to $200?

Solana’s three-year journey has seen highs and lows, with a notable dip following the FTX scandal in November 2022, causing a drop from over $100 to below $20. Various challenges, including network outages, performance issues, led to a $47 billion market cap loss in 2022. However, coming into 2023 there has been a turnaround, signalling a positive shift in Solana’s fortunes. So will this turnaround take Solana to $200?

Solana News Today and Market Analysis

Solana has faced negative pressure after a prolonged bull run, leading to concerns about a potential major price drop. The transfer of a significant amount of Solana tokens has heightened worries of a sell-off. Despite these concerns, the anticipation of the JITO Airdrop and increased institutional participation, coupled with Solana’s rapidly growing and diverse user base, has instilled optimism. There are expectations that Solana could experience a rise and potentially reach the $70 mark in the near term.

In November, Solana has seen $70 billion in $USDC volume. The large transfers of $USDC indicate increased institutional involvement and a rapidly expanding and diverse user base. Additionally, the trading volume on decentralized exchanges within the $SOL ecosystem reached an all-time high.

Solana vs Base: Solana is ahead again

Solana, Buy or Sell Poll

Net Buy % = Buy% – Sell%

June 25th: +24.4%
Aug 21st: +52.5%
Oct 23rd: +36.4%
Nov 13th:+45.3%
Nov 27th: +54.0%
Nov 28th: +48.0%

Why did Solana Crash? How Low Will Solana Go?

Solana experienced a series of setbacks, including a crash following Robinhood’s delisting and Crypto.com’s U.S. service closure. Binance.US’s suspension of dollar deposits due to SEC’s request added strain. Incorrect reports of FTX selling $600M Solana and the launch of Coinbase L2 Base further contributed to Solana’s loss of momentum. Once boasting a market cap of $52.6 billion, Solana’s value dropped to $4.7 billion by early 2023.

Despite this, Solana’s price decline halted recently, with a strong recovery driven by partnerships (e.g., Visa), improved security, and mitigated concerns from FTX’s liquidation. However, ongoing considerations include regulations, macroeconomic conditions, and market competition for sustained progress.

Solana Performance Statistics

Solana DeFi

TVL: $597.0M
Last 7 days change: -0.1%
Last 1-month change: +98.6%

Solana NFT Data

Sales (7 Days): $23.0M
Last 7 days change: +27.2%
Last 1-month change: +133.1%

Why is Solana Going Up?

Will Solana Recover? Will Solana go up?

Solana is on the upward trend, but further surge will depend on numerous factors

What happens to US interest rates and inflation?
What happens to the Global economy?
Solana’s performance on Key use cases

US interest rates are expected to fall sometime next year. This should help Solana. The world’s economic recovery is a little uncertain as we await more data on China and evidence that Europe will recover. Solana has shown substantial improvement in DeFi but has been losing pace on NFTs slightly, which is its core strength.

How High will Solana go?

Solana has risen 300% this year. Because of fewer security breaches than last year, concerns over a massive sell-off post-FTX’s liquidation of a $1.16 billion Solana holding proved less severe than feared, and some other significant partnerships have contributed to the massive rally of Solana this year. Solana’s price is expected to reach a maximum price level of $76.9 by the end of 2023. And it is predicted to reach $430 by 2030.

Can Solana reach its all-time high value again?

Solana has held on to its own despite the setbacks in 2022. Prominent amongst the gains in 2023 are

Fewer or No security breaches in 2023
Partnership with Visa

These are significant moves forward. With the Global economy likely to recover in 2024, Solana is likely to head toward its all-time high. There are numerous risks of course – Regulations, Macroeconomic uncertainty, Increased competition, and such.

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 8th – Moderately Competitive
Gaming – Present – Not Ranked – Not Competitive
Payments – Not Present
NFT- Ranked 3rd- Very Competitive

In short, unlike say Ethereum or Matic, Solana appears to be a specialist NFT-focused 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?

To reach $200, Solana needs to grow by 3.7 times. 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-19 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 longer 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 in the next 5 years or 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.

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.