Will Solana Recover? How High Will Solana go?

Will Solana Recover? How High Will Solana go?

Will Solana Recover? The current momentum is favorable for the recovery of Solana.

How High Will Solana Go? Solana is predicted to trade within the range of $25 and $40 for the next few weeks.

Solana Price in USD

Solana recently went below $10 and there was a big question about the future of Solana. Solana 2023 has shown its intent to recover. The trading volume for Solana has been rising and the overall market cap of Solana is nearing $10 B.

Here is how Solana has been performing:

  • 1 M: +100.9%
  • 6 M: -41.2%
  • 1 Y: -75.7%

If you want to read about Solana Price Prediction, click here

Solana Recovery: Technical Metrics (Daily)

  • RSI – Sell
  • Stochastic RSI (14) – Overbought
  • Moving Averages – Neutral
  • Overall – Moderate Sell

Will Sol Recover? Favorable View

  • While the Global economy is in trouble, we are perhaps at the tail end of it with the US leading the recovery and China going for Herd Immunity.
  • Solana is trading much below most of its peers (for example Shiba Inu does not have a better use case, and neither does Dogecoin)

In the short run, Solana’s could rise as it appears to fall to a lower valuation than peers with far worse fundamentals.

Will Solana Recover? Negative View

  • Core Use cases are limited,
  • Speed advantage does not exist anymore as numerous blockchains offer that and so do Ethereum Layer-2 chains

Without further innovations that help consumers and businesses, the Ethereum Blockchain Ecosystem including Ethereum, Polygon, Uniswap, and ImmutableX will continue to rise faster than either Solana or Cardano.

How High will Solana go?

Solana is surging and there is an extremely bullish trend that is driving the price of Solana higher. In January 2023, Solana Price has been surging. From being below $10, Solana price is now above $20. Solana price is predicted to go higher. Considering the technical chart, Solana is set to trade in the range of $25 and $40 for the next few weeks.

Read: Can XLM reach $50, $100, and $1000? XLM Price Prediction 2023, 2025 and 2030

Why did Solana Crash?

  • The FTX exchange turmoil and the crash of the FTT coin affected the entire crypto market but Solana was the most affected. The TVL of Solana crashed from being over $620 M on November 9th to below $342 M on November 13th. The downfall of FTX led to massive turmoil for Solana and Solana-linked platforms. One of the biggest meltdowns was the price of the SOL token falling below $20 and the overall market cap of Solana going below the Top 10 rank.
  • Solana Foundation has 3.24m shares of FTX Trading LTD. Solana Foundation holds 3.43m FTT tokens and 134.54m SRM tokens from the decentralized exchange (DEX), Project Serum which is a Solana-based DEX founded by Bankman-Fried.
  • Lending and borrowing platform Solend, running on the Solana blockchain saw the value of its assets dropping from $280 million on Nov. 2 to under $30 million now.
  • Solana DeFi saw almost $700M in Value Wiped Out on FTX Fallout.
  • The exit of DeGods and yOOts has worsened the situation for Solana
  • Lastly, Solana’s major issue has been that it has witnessed massive crashes not just due to the deteriorating market condition but also due to its own network outrages.

What can the Solana community expect for 2023?

Solana is trying to make its consensus at the speed of light, meaning that it aims to further increase the speed. The following are the development updates that the Solana community can expect to happen in 2023:

  • Launching Solana Mobile Stack (developed by Solana Mobile) which aims to make cell phones crypto-friendly.
  • Solana is upgrading its network by rolling out QUIC, which is a permissionless protocol for processing transactions. It is already live on Mainnet-beta.
  • Launch of Local fee markets, which will allow users to process their transactions first, by paying a little extra amount.
  • Development of a new standard, namely Token-22, to enable the development of new apps which will increase Solana’s utility in terms of programmability.
  • Introduction of some “Turbine Optimizations” to help Solana transmit information within seconds.
  • Introduction of Automated Audits to increase the security feature of the platform.

Factors that can impact Solana in 2023

The following are the major factors that can impact and govern Solana’s price in this year:

Market conditions like liquidity and inflation: As we know that 2022 wasn’t a good year for the entire crypto market because the conditions of liquidity and inflation were not in favor. Therefore, these factors will again play a crucial role in determining SOL’s price for 2023.

Use cases: Until now, Solana was distinguished because of its high speed. However, there are many other blockchains in the market that can offer higher speed. Thus, to be competitive in the market, Solana needs to increase its use cases this year.

Community: As per the latest Reddit discussion, Solana’s community has not many expectations with the coin now (which is definitely not a good thing for Solana). Therefore, the community’s approach to crypto can also be one of the driving factors for its price.

Will Solana go up?

Solana will continue to rise at the beginning of this year as numerous rivals with far worse use cases are priced more favorably at the moment. Secondly, with the US likely to recover and China going in for full herd immunity, things could favor Solana for now.

Transaction Statistics

NFT: According to Cryptoslam, sales of NFT on the Solana blockchain have fallen from $311 M in April 2022 to $68 M in December 2022. Ethereum too was struggling with sales on the Ethereum blockchain having fallen $3.3 B in April to $517 M in December. s.

DeFi: According to DeFiLlama, DeFi TVL on the Solana blockchain at $206M in December, has fallen from nearly $5B in April. In the case of Ethereum, TVL has fallen from nearly $60 B in April to $22.9B in December. Solana has fallen from $255 M a week ago while Ethereum has remained stable.

Other Transactions: Very few tokens are hosted on Solana as compared to Ethereum which means that Eth has begun to recover as trading volumes are up on Tokens like Shiba Inu and Matic which are linked to Ethereum.


Can Solana reach its all-time high value again?

Solana’s all-time high value was $259 which it achieved in November 2021. Note that SOL grew by nearly 70 times in 11 months to reach its all-time high price (i.e., from a lower value of $3.7 in January 2021). Thus, it grew by 6.36 times per month.

Therefore, to reach a price level of $259 again, Solana needs to grow by just 16.22 times, considering its current market price of $15.96. Hence, it would ideally need less than 3 months to reach that value again.

However, there are factors to consider. First of all, there are market conditions (such as inflation and liquidity) which are not yet in the favor of the crypto market. Secondly, Solana’s use cases are very limited and its only USP was its speed, which now is claimed by many other blockchains as well.

Thus, Solana cannot be expected to cross its all-time high value again unless it works on increasing its utility and we can expect somewhat recovery in its price only once the market conditions ease out.

How Low Will Solana Go?

Solana has recovered close to $14 after having fallen below $9. The current momentum is favoring Solana because

  • Despite the exit of DeGods and y00ts, Solana continues to remain in 2nd position on NFT sales
  • DeFi stats appear to have stabilized
  • Most of the FTX-related selling appears to be done
  • Solana has crashed much more than leading blockchains
  • The US economy is on a path of recovery, and Asia excluding China continues to perform well

The biggest trigger for Solana’s recovery has been positive comments from Vitalik Buterin of Ethereum.

Will Solana Recover?: FAQs

Does Solana have a future? Will Solana Survive?

It is difficult to predict if Solana has a long-term future. A Solana does many of the same things that other blockchains do. If blockchains take off, Solana will get a small share and will do well. However, should the growth remain tepid, smaller players like Solana are likely to be hammered first.

Will Solana rise again?

Solana could certainly rise again over the next few months on account of the improved economy. However, it is likely to underperform important cryptocurrencies like Ethereum or smaller altcoins that have more value for the user.

Can Sol rebound?

The Sol rebound is unlikely anytime soon as the current environment is unfavorable. Chief among them are the deteriorating on-chain statistics as well as the deteriorating global economy.

Why is Solana struggling versus Ethereum?

Solana has been deemed as the “Ethereum Killer” but the reality remains beyond it. The best bet for Solana blockchain has been its speed but beyond that Solana has failed to compete with Ethereum.

  • In order to differentiate itself, every blockchain network has tried to occupy a particular market, Solana portrayed itself as one of the biggest NFT players. However, it is lagging way behind Ehterum even in the field of NFT. More than 90% of the NFTs have been created as ERC-721 tokens on the Ethereum network.
  • Similar to Ethereum, Solana has built its own Layer 1 solution for NFTs and it is one of the fastest-growing ecosystems but when compared to Ethereum, Solana remains to be a minor player in the NFT world.
  • One of the advantages of Solana over Ethereum was that the Soalan blockchain was more environmentally friendly. However, with Ethereum Merge, the ETH blockchain will be moving from a proof-of-work model to an environmentally friendly proof-of-stake ecosystem.

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. 



Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.

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