Will Solana Recover? Solana Price Prediction 2023-2030

The article discusses the short-term SOL Prediction as well as Solana Price Prediction 2023, 2025, and 2030. Read on to know if “Will Solana Recover? “

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Solana Price in USD

Solana Price Performance

• Last 5 days: +2.4%
• Last 1 month: -6.3%
• Last 6 months: -37.1%
• Last 1 year: -81.0%

Solana is a blockchain platform designed to enable decentralized applications and provide high transactions at lower transaction fees.

Solana’s native cryptocurrency is called SOL. SOL is used to pay for transactions on the Solana blockchain, and it can also be staked to earn rewards and participate in the platform’s governance.

Is Solana a Good Investment?

Solana is a blockchain platform that supports smart contracts including NFTs. It was created as a competitor to the Ethereum blockchain network. As it is known that most cryptocurrency projects are based upon the Ethereum blockchain, the Solana blockchain serves as an alternative to it. One of the popular cryptocurrencies based on the Solana blockchain network is Stepn. Here are some facts about Solana:

• Solana is a public blockchain network with integrated smart contract functionality.
• SOL is the native token of the Solana blockchain network.
• Solana was first proposed by Anatoly Yakovenko in November 2017.
• The first block of Solana was created on March 16, 2020.
• Solana uses a consensus mechanism between proof of stake and proof of history.

The Solana platform offers excellent performance without any layer-2 or off-chain solutions. Its Proof of History framework is its key distinguishing feature, which gives it the highest throughput among Layer-1 chains. Solana’s hybrid consensus method trades decentralization for speed. Solana’s creative integration of PoS and PoH is a revolutionary concept in the blockchain space. Similar to Ethereum, Solana has built its own Layer 1 solution for NFTs and it is one of the fastest-growing ecosystems.

• Low Fee: Solana differs from all of these other projects because it uses a consensus algorithm called Proof of History (PoH). Unlike traditional Proof-of-Work (PoW) algorithms, PoH does not require an expensive mining process; instead, it relies on verifiable mathematical proof instead of computational power. This means there will be no mining fees on the network, and transaction costs will be meager.
• NFT and Smart contracts: Solana has jumped into the NFT market and is ready to share its NFT option. Solana has been looking at non-fungible tokens and smart contracts as a way to expand their business, but they want to ensure they’re doing it right. The NFT industry has gone wild over the last year, and many companies are jumping on board.
• The non-fungible tokens became a high-growth industry opportunity followed by epic sales hosted by eminent digital artists. Leveraging this expanding industry, Solana jumped into the market to share the NFT option with everyone.

Let us look at some of the Metrics

1. Of the $44.7B Total Value Locked in DeFi, $271 million is locked on the Solana Blockchain. This is 4 times the TVL locked on the Cardano Blockchain. However, this is much lower than Ethereum, Binance, Tron, Polygon, and even Avalanche
2. Over $120 Million of NFTs on Solana were traded in the last 30 days. Ethereum was at $548 million. This is the second highest among all blockchains.
3. Let us now look at the Top blockchain games. According to Dappradar, only one Solana game with very few players is listed in the top 50 games.
4. Solana is still not available on Payment platforms like Bitpay.

Overall Solana appears to be better placed than Cardano but most of its strength appears to be located in the NFT segment.

Synthetix Price Prediction

Solana Performance and Technical Analysis

Solana has been in real trouble after the collapse of the FTX exchange. The 10th largest cryptocurrency in terms of market size, Solana is struggling to stay above $20.

The latest surge in the crypto market helped the SOL price break above $20 but it remained below $25. Solana TVL is around $271 M which is the lowest for Solana since the collapse of the FTX exchange. In November before the FTX collapse, Solana’s TVL was around $1 B, and now it is less than $300 M.

Despite trying to position itself as an alternative to the Ethereum blockchain, Solana is struggling and there is hardly any improvement in the price of SOL.

On the chart below, Solan has fallen below both the 50-day as well as the 200-day Moving Averages. The 50-day MA for Solana is $21.01 and the 200-day MA is $20.89. At the time of writing the net SOL price is $20.68.

Solana has once again turned bearish and the RSI of Solana confirms the bearish momentum. The RSI has fallen below the 14-day MA it is on a downtrend.

The support for Solana is at around $19.65 while the resistance is $23.45. however, the buyers will need to push the SOL price above the 50-day as well as the 200-day MA before it could retest the first level of resistance.

The indicators which had been positive for SOL for the last couple of days have finally reversed and now the majority of the indicators are negative.

The momentum oscillator has entered the bearish axis while the Fear and Greed index for Solana is now within the bearish axis.

On the MACD chart, the MACD line is on a downtrend. It is testing the signal line from above and is likely to fall below as the volume bars on the bullish axis have fallen.

Overall Solana is bearish and the price of the bears will potentially drag the SOL price below $20.

Why is Solana good for NFTs?

• Solana uses the proof of history consensus algorithm which enables it to verify and process transactions quickly. This reduces the cost of minting. Solana also uses Turbocharged transactions which process transactions in parallel. Both of these together make it very friendly for NFTs.
• Solana’s proof of consensus algorithm has low power consumption and hence the cost of minting NFTs is much lower than other blockchains
• Lastly, Solana uses a peer-to-peer communication protocol that enables nodes to communicate with each other and process transactions quickly.

These 3 features together make Solana extremely friendly for NFTs as they can process transactions quickly.

Why did Solana Crash?

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

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 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? Will Solana go up?

• Global economies are recovering with the US Federal Reserve likely to hike rates by a much smaller 25 basis points
• Solana is trading much below most of its peers (for example Shiba Inu does not have a better use case, and neither does Dogecoin)

Solana’s price has increased by 2.36 times in the past 30 days.

Furthermore, Solana’s NFT sales volume has reached 151.596M in the past 30 days (which has increased by around 43% since the previous month). It has also witnessed around 70,466 unique sellers and 117,046 unique buyers in the month of January 2023 alone, with an average sale price of $91.31.

Also, its increasing use cases in Defi and NFT markets can be considered a plus point and this might help increase SOL’s price further in the future. 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.

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 $20 and $30 for the next few weeks.

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) that 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.

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

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Solana Price Prediction 2023, 2025, 2030 and 2040 (Aggregated)

• Solana Price Prediction 2040: For 2040 Solana’s Price Prediction is $3922. To touch this mark, Solana has to gain a minimum of 30% a year.

Solana vs Key Competitors

Solana vs 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 Ethereum 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.

Solana Vs Polygon

Let us have a brief comparison between Solana and Polygon:

• Polygon is a layer 2 blockchain, in contrast to the layer 1 blockchain of Solana.
• Solana’s primary focus is NFTs and Defi, whereas Polygon also caters to NFT, but its main focus is to provide scaling solutions to Ethereum.
• SOL’s price has decreased by nearly 76% in the last year, in contrast to MATIC’s 23% decrease in price.
• Solana’s price has decreased by around 38% over the past six months. On the other hand, Polygon’s price has increased by around 30% for a similar duration.
• In the last month, Solana’s price has increased by around 83%, in comparison to Polygon’s 51% increase.

Thus, though there are differences in Solana and Polygon’s blockchain, MATIC is performing better in comparison to SOL for the last few months.

Solana Prediction 2023: Influencing Factors and Expectations

Factors that can impact Solana in 2023

The following are the major factors that can impact and govern Solana’s price 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 had 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.

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:

• More mobile-friendly crypto transactions with the development of Solana Mobile Stack (by Solana Mobile).
• Development of Solana dApp Store as a marketplace for mobile dApps.
• Development of QUIC for fast asynchronous communication.
• Development of stake-weighted QoS for the purpose of preventing unstaked nodes from spamming everyone else.
• Development of automatic audits to help developers catch common development mistakes.
• 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.

The following are the updates from the previous year on Solana’s ecosystem:

• Solana’s usage averaged nearly 4,000 transactions in one second.
• Till December 2022, Solana managed to have 1,911 independent validators and a Nakamoto coefficient of 30.
• The entire network was made carbon neutral.

Will Solana Recover? How to buy Solana?

Solana cryptocurrency can be purchased on various CEXs and DEXs including Binance, Coinbase Exchange, KuCoin, Kraken, Bitfinex, Bithumb, Gemini, Bittrex, Bitstamp, Gate.io, OKX, Bybit, raydium and Balancer.

Solana can be purchased in many ways.

(A). Use your currency (Dollars, Pounds, etc) to buy Solana on any of the Cryptocurrency Exchanges – Coinbase, Binance etc

(B). Use your existing cryptocurrency wallet and a DEX to exchange your cryptocurrency with another cryptocurrency

If you wish to purchase from a cryptocurrency exchange, the process is fairly simple

• Create an account with any of Coinbase, Binance,Crypto.com, Kraken, etc. This will need some basic documentation that ensures KYC so that these exchanges are not used for Money Laundering. Bigger exchanges tend to have a higher fee while smaller tend to lower fees but are regarded as less safe.
• Each of these exchanges has various features and transaction fees. So evaluate them carefully.
• Add a payment method (Bank account, debit or credit card, wire transfer) and then fund the account
• Start trading by selecting the SOL trading symbol and then enter the quantity
• On Binance, you can use peer to peer method to buy from other users
• You can store your crypto in the trading account or your personal wallet(You need to open another account for that)

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.