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Solana Price Prediction: Can SOL Price Hit US$300 in 2021? What will be its Price by 2025?

Altcoin prices are gaining momentum as more and more investors are understanding and investing in cross-chain and smart contract protocols and projects. In fact, the dominance rate of Bitcoin (BTC), the largest cryptocurrency in terms of market cap, has dropped to around 41% currently. 

One of the most happening protocols that made amazing gains in the last one year is Solana. It was Anatoly Yakovenko who started creating it and teamed up with Greg Fitzgerald, his Qualcomm colleague, in 2017. Both of them founded the Solana project. However, it was in 2020 when the Solana protocol and SOL coin (the Solana network’s native token) were released to the public. 

Since its release to the market in April 2020, the price of SOL was trading flat. However, its price rally started in early 2021. SOL price has increased by around 7,800% year-to-date (January 1, 2021, to September 17, 2020). 

To know whether you should invest in Solana coins now, you should know more about the project, its potential, fundamentals, and price prediction (up to 2025). 

Solana (SOL) Coins: Facts & Figures

All these facts and figures will help you to make a decision on investing in Solana by making SOL price predictions:

  • SOL cryptocurrency price (Current): US$144.28 (as of Sep 17, 2021)
  • Trading Volume (24 hour): US$3,324,721,682
  • All-Time High (ATH) Price: US$214.96 (reached on Sep 09, 2021)
  • All Time Low (ATL) Price: US$$0.5052 (reached on May 11, 2020)
  • YTD (Year-To-Date) Return: +7,778.89% (Jan 1, 2021 to September 17, 2021)
  • Market Cap: US$42,742,493,156
  • Crypto Rank (in terms of market cap): 7
  • Fully Diluted Market Cap: US$72,960,881,207
  • Max Supply: --
  • Total Supply: 504,301,209
  • Circulating Supply: 296,831,548.70 SOL

What is Solana (SOL)?

Anatoly Yakovenko, one of the main architects behind the Solana project, observed that the nodes of most networks back in 2017 took a lot of time to come to a consensus point. He also found out that almost every project at that time suffered when they had to make multiple transactions. Scalability was a big issue at that time. 

This made him partner with his former Qualcomm colleague Greg Fitzgerald to build Solana testnet. Both of these software engineers tried to create a network that was innovative as well as highly scalable. While the Solana testnet was released in 2018, the Solana Mainnet Beta was released in March 2020. The Solana Foundation (headquartered in Switzerland’s Geneva) officially launched Solana in March 2020.

The Solana protocol is a highly functional open source project that utilizes the permissionless nature of the blockchain technology to provide users with DeFi (Decentralized Finance) solutions. This protocol is widely used for facilitating the creation of DApps (decentralized applications). 

Solana combines PoH (proof-of-history) consensus with the underlying PoS (proof-of-stake) consensus of the blockchain to improve scalability. The innovative hybrid consensus model enables the Solana project to make DeFi accessible on a larger scale. That’s why Solana evokes interests from both institutional traders and small-time retail traders. 

What’s so Special about Solana (SOL)?

The proof-of-history (PoH) consensus is the most important and special aspect about Solana, which makes the project so special. Anatoly Yakovenko developed the PoH consensus. Proof-of-History consensus not only increases the scalability of the protocol but also boosts the usability of the network multiple times. 

The hybrid consensus model (PoH consensus over the underlying PoS consensus of the blockchain) of Solana has decreased the validation times for transaction as well as smart contract execution significantly. The main reason why the institutional investors have shown so much interest in the Solana project is its lightning-fast processing time. 

Both the enterprise customers and small-time users get benefited from the Solana protocol. This protocol guarantees high scalability and fast processing at a low cost. These factors increased the demand for SOL, catapulting it from the 42nd rank (in February 2021) to the 7th rank (September 2021) in the crypto market (in terms of market capitalization). 

Fundamental Analysis of Solana (SOL)

Solana blockchain supports the execution of smart contracts as well as the development of DApps (decentralized applications). The transactions have been timestamped for maximizing efficiency. Solana is a fast and secured blockchain that provides an open infrastructure (which is best for global adoption). One of the best things about Solana is that the network is capable of powering micropayments. 

For inputting data for every transaction, there is a particular hash for Solana. The Gulf Stream feature of SOL is unique. It enhances scalability. It is the unique verification structure of Solana that enhances the scalability of the network. 

It is the unique verification structure that enhances the scalability of the network. For validation of transactions, the users are required by the PoS system to hold some SOL coins. For transaction validation PoW (Proof of Work) mechanism can be used. However, PoW is a time-consuming process, creating congestion in the network. 

That’s why Solana has come up with its own Proof of History system. It timestamps every transaction on the blockchain. This is done before the PoS system carries out this duty. This enables the nodes to establish blocks without requiring them to match with the network. A lot of time is saved during this process of validation, which in turn increased the per-second speed of the transaction. 

Solana Price Prediction 

SOL was trading at around US$1.60 at the beginning of January 2021. However, the price smashed US$10 by mid-February 2021. By April 2021-end the price shot up by 4-times to US$40. The price further increased by US$58.30 by May 2021. The upward momentum of Solana continued and the exponential rise in price started in mid-August 2021. It continued till it reached ATH at $214.96 on September 9, 2021. Since then the price has corrected by over 32% and is currently hovering around US$139.31. 

Solana Price Prediction 2021

The sales of non-fungible tokens (NFT) have reached new heights. It is the increase in popularity of the animal-based NFTs that caused the massive bull run experienced by Solana since August 2021. The correction of price started to happen after touching the ATH at US$214.96 on September 9, 2021. It has corrected by around -33% in the last one-month to around US$140. 

Analysts believe that the uptrend will start again after a correction. They believe there could be two scenarios:

  • If the Solana network improves the centralization issue, the SOL price can reach anywhere from US$250.44 to US$300.07. 

  • If there are no remarkable technological improvements and the current technologies of the Solana project continue, the average price of SOL will be anywhere from US$94.91 to US$100. 

Solana Price Prediction 2022

  • If Solana continues with its broadly anticipated upgrades and continues its competition against the fast upgrading rivals such as Ethereum (ETH) and Cardano (ADA), the price prediction forecast of SOL is anywhere from US$500 to US$750 by the end of 2022. 

  • In case, the project becomes inconsistent in its approach and upgrades (in addition to any adverse external factors), the price of SOL may fall to a potential low at US$22.19. However, even the most bearish analysts suggest that the price prediction forecast of SOL in such adversities is around US$40. 

Solana Price Forecaster till 2025

The DeFi coins are booming and their momentum will increase manifolds in the coming 5-years. Therefore, there are high chances that the Solana project will collaborate for bridging its assets to decentralized finance. In fact, many investors are likely to get attracted to it because of the project’s delegated staking. This may make the price of SOL increase to as high as US$200.03 in the near future. In case, there are delays in the implementation of its Mainnet Beta version, the SOL token price may spiral down to US$50.99. 

Considering both the possibilities, here are my prediction of price of Solana (SOL):

  • 2021-end

Potential High Price: US$300.07

Potential Low Price: US$50.19

  • 2022-end

Potential High Price: US$500.17

Potential Low Price: US$100.31

  • 2025-end

Potential High Price: US$1000.14

Potential Low Price: US$300.08

Final Words

Always remember that cryptocurrency forecast and investment advice always come with the risk of loss. As prices of cryptocurrencies are highly volatile, you should be ready to consider the loss aspect too. If you can’t afford to lose money, crypto forecasts and crypto investment are not for you. Instead invest in fixed income assets. To be sure about your investment, always go through the fundamentals, technicals, and historical data of the price of the Solana market. Once you are absolutely sure about investing, go through the forecasted Solana price, and then invest.