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Solana (SOL) price predictions / forecasts for 2024-2050

Cryptocurrencies /
Axi Team

This is an overview of the Solana network and its native token, SOL. We look at the key factors currently weighing in on its price, how it has performed in previous cycles, and how analysts and influencer media feel about potential future price targets.

 

What is Solana?

Solana, which was introduced in 2020, is a blockchain platform that supports smart contracts. Anatoly Yakovenko is widely recognised as the creator of Solana and continues to drive its development.

Solana’s primary objective is to address the scalability limitations faced by other smart contract platforms, allowing it to better support decentralised finance (DeFi), non-fungible tokens (NFTs), and other decentralised applications (dApps).

Often attributed to the leading smart contract blockchain Ethereum, these limitations can lead to slow transaction processing times and prohibitive fees, thereby limiting the user experience and discouraging developer adoption. Solana's architecture aims to address these concerns by increasing transaction speeds and reducing costs.

Blockchain platforms that aim to address the shortcomings of Ethereum are often referred to as "Ethereum killers." Some other popular examples that also go by the same nickname are Cardano (ADA), Polkadot (DOT), Avalanche (AVAX), and Tezos (XTZ).

Solana distinguishes itself with a variety of advanced features. Known for its high throughput, Solana processes thousands of transactions per second using a mechanism known as ‘Proof of History’ (PoH), which timestamps transactions before adding them to the blockchain. This enables parallel processing and significantly increases efficiency.

Another key attribute of Solana is its low latency, which is critical in electronic financial markets where timing can have a significant impact on transaction costs. High-speed applications like trading benefit greatly from Solana's network's fast confirmation times, which often complete transactions within seconds.

An architecture that supports horizontal scaling gives Solana its scalability, enabling the addition of more hardware without compromising performance. This capability ensures that the network can expand in response to increased demand without slowing down.

Solana uses a decentralised network of nodes to validate transactions and secure the blockchain. Validators who stake SOL are rewarded for their contributions to network integrity. Some argue that Solana is less decentralised than other blockchains like Ethereum because there are fewer validator nodes and running a validator requires powerful hardware, making it potentially less accessible.

The platform promotes a developer-friendly environment by providing comprehensive documentation, tools, and programming support to help with the creation and deployment of decentralised applications.

A series of outages, some causing complete network disruptions, have raised concerns about Solana's scalability. These incidents, attributed to software bugs and malicious attacks, highlight the need for ongoing network improvements to handle future growth. While Solana boasts lower transaction fees compared to congested networks like Ethereum, scalability remains a challenge. The meme coin craze and algorithmic trading appear to be pushing the network's limits with the recent surge in traffic.

However, investor confidence is holding firm. The SOL token price has exhibited resilience, rebounding after each outage.

 

What is Solana used for?

Since its launch in March 2020, Solana has rapidly become a key player in the blockchain and cryptocurrency ecosystem, supporting a wide range of applications. In DeFi, Solana hosts numerous applications that facilitate direct peer-to-peer transactions, including decentralised exchanges, liquidity pools, and lending protocols. This is possible thanks to Solana's high throughput and low latency, which enable efficient and cost-effective financial services.

Solana is also prominent in the Non-Fungible Tokens (NFTs) market, where it supports platforms for the creation, trading, and ownership of digital assets such as artwork, collectibles, and virtual real estate. Similarly, in gaming, Solana's capabilities allow for the development of decentralised platforms and play-to-earn features that utilise in-game digital assets.

Furthermore, Solana is a popular choice for issuing and managing stablecoins, and facilitating fast, affordable international payments and remittances.

Overall, Solana’s combination of scalability, low transaction costs, and smart contract functionality makes it an attractive foundation for developers and enterprises building decentralised digital solutions across various sectors. Many of these focus on DeFi and liquidity solutions, such as:

  • Jupiter Exchange: A DEX (decentralised exchange) that aggregates liquidity across multiple Solana markets, offering users the best prices through advanced routing.
  • Orca: Solana's dominant DEX with significant user investment (Total Value Locked). It finds optimal trade routes and allows users to earn from providing liquidity.
  • Raydium: The largest automated market maker on Serum DEX, facilitating token swaps and fundraising for new projects on Solana.

The SOL token functions as the transactional currency for everyday network activity. Users can stake SOL to contribute to network security and earn rewards as validators. SOL ownership may also grant voting rights in future governance decisions.

 

Solana highlights

FTX, the major cryptocurrency exchange that collapsed spectacularly in late 2022, and its sister company Alameda were strong supporters of Solana. They heavily invested in the ecosystem by buying a significant amount of SOL tokens, supporting Solana-based startup projects (including the Serum DEX mentioned above), and listing SOL for trading on their platform. This involvement boosted Solana's popularity and liquidity.

However, it also raised concerns about centralization within the Solana ecosystem, which proved to be valid. When FTX's house of cards collapsed in November 2022, investor confidence in Solana also plummeted. The price of SOL experienced a dramatic freefall, dropping nearly 70% in just four days, reaching lows of $8. This represented a staggering 97% decline from its all-time high of $268.

This paved the way for a stunning recovery for the token, which has been increasing in price since October 2023.

 

What is driving the demand for SOL?

Let’s explore recent developments that have made Solana shine again.

Solana's low transaction fees and lightning-fast infrastructure make it an ideal breeding ground for meme coins. The platform's accessibility, with its low barrier to entry, enables vibrant token communities where anyone can participate in the fun and potential of meme coin trading and development.

An example of a popular meme coin on Solana is BONK, which was inspired by Dogecoin (DOGE) and the broader trend of meme coins. The hype around BONK contributed to increased activity on Solana, highlighting the blockchain's capability to support high transaction volumes and its potential for hosting viral tokens and applications. Other meme coins that have demonstrated substantial traction and growth within their individual communities on Solana are Samoyedcoin (SAMO), and SolChicks Token (CHICKS).

In August 2023, Solana Pay integrated with Shopify, allowing merchants to accept USDC on Solana as payment, marking a major step for crypto in e-commerce. Through this decentralised payment system, millions of Shopify businesses can accept instant, low-fee payments using USD stablecoins, eliminating bank charges and opening doors to innovative features like token-gated offers and NFT loyalty programs.

September 2023 marked a significant step towards wider blockchain adoption for payments. Visa tapped Solana's speed and efficiency to join its expanded stablecoin settlement program. This move signifies a future where blockchain technology can power faster and cheaper cross-border transactions, potentially alongside established networks like Ethereum.

Google Cloud’s October 2023 launch of its Solana Node Engine was also a key milestone for the platform. Leveraging Google's infrastructure could boost developer adoption, improve scalability and security, and signify broader mainstream validation of blockchain technology.

After its April release, Solana Labs subsidiary Solana Mobile's Saga smartphone sold out in December 2023. This high-end Android device targets Web3 users with built-in digital asset management and secure Solana blockchain interaction. Saga's blockchain capabilities eliminate the need for hardware wallets, making it ideal for crypto aficionados, NFT collectors, and dApp users.

In the same month, Circle, the issuer of USDC, expanded EURC's reach by enabling native support on Solana. Now available on four blockchains, EURC aims to improve European finance with features like faster payments, cheaper remittances, and holding euro savings without a bank account. Solana's DeFi integration allows for features such as instant currency exchange and trading.

 

What affects the price of SOL?

Tokenomics

Factors like token distribution, user demand, and events such as token burns or unlocks impact supply and demand, affecting SOL's market value.

Solana (SOL) currently ranks within the top 5 cryptocurrencies with a market capitalisation of $77 billion. A key characteristic of its tokenomics is an uncapped total supply, unlike some cryptocurrencies with a predetermined limit. This might raise inflation concerns, but Solana mitigates this with a disinflationary emission rate. Solana continuously releases new SOL tokens but at a steadily decreasing pace.

SOL tokens are distributed strategically. A portion is allocated to the project's founders and early supporters, while another portion is dedicated to rewarding validators who secure the network.

Regulation

Solana's position is heavily intertwined with the growth of Decentralised Finance (DeFi). DeFi applications built on Solana rely on SOL for transactions and functionalities, making SOL's price susceptible to regulatory changes impacting the DeFi landscape.

Clear regulations could bring legitimacy and stability to DeFi, attracting new users and capital, boosting demand for SOL, and potentially driving up its price. Overly restrictive or unclear regulations, on the other hand, could create uncertainty and hinder DeFi growth, with the opposite effect on demand and the price of SOL.

The Security Exchange Committee's (SEC) recent actions against DeFi player Uniswap (UNI) serve as an example. While not directly targeting Solana, it signals potential future regulatory scrutiny for DeFi projects in general, including those within Solana's growing ecosystem of lending platforms, DEXs, and yield farming protocols.

Other factors

Market sentiment plays a significant role in influencing Solana's price. Positive news about Solana's technology, potential partnerships, or new developments can boost investor confidence and drive the price up. Conversely, negative trends can lead to a decrease in price.

Additionally, the adoption rate of the Solana blockchain and its use in areas like DeFi and decentralized applications (dApps) also drive SOL's price. As developers find innovative uses for Solana, increased demand for SOL can lead to price appreciation.

Development milestones are another critical factor. Solana’s price can fluctuate based on the achievement or failure to meet technological expectations, such as network upgrades or new functionalities.

Competition within the cryptocurrency market also influences SOL’s price. Solana's ability to differentiate itself by emphasising its strengths—such as speed, security, and scalability—and the support it offers to developers helps it stand out and potentially enhances its value relative to competitors.

Finally, market liquidity and trading volume also have an impact on SOL's price. High liquidity and trading volume typically indicate robust market activity, contributing to either price stability or volatility, depending on the broader market conditions.

 

Historical price performance

Lowest and highest prices yearly, since 2020

Year

Lowest Price (USD)

Highest Price (USD)

Average Price (USD)

2020

0.5 4.94 1.77

2021

1.5 260 80

2022

8 179 58

2023

9 125 29

* Average prices are calculated from the sum of all daily closing prices divided by the number of days in the year. Where appropriate, figures have been rounded to the nearest whole number.

Stretching back to its early years, Solana (SOL) has experienced significant price volatility, with notable highs, lows, and clear cycle trends. This has proven to be quite typical of crypto networks and reflects a broad range of market conditions and developments that include periods of rapid growth, market corrections, and consolidation. Despite obvious volatility, SOL has nonetheless demonstrated relative resilience and maintained its position as one of the leading blockchain platforms in the cryptocurrency ecosystem.

Below is a summary of SOL's historical price performance, including notable milestones and trends.

  • Launch and early growth (2019-2020): Solana was launched in March 2020. Initially, its price was relatively low, trading below $1 for much of 2020. During this period, SOL's price increased gradually as the project gained attention and development progressed.
  • First bull run (early 2021): SOL's price began to steadily rise in early 2021 amid growing interest in the DeFi space and increased understanding and uptake of blockchain scalability. In February 2021, SOL went through the $10 mark for the first time and continued tracking upwards, reaching above $50 by May 2021.
  • Minor market correction (mid-2021): Market leader Bitcoin's price decline, along with regulatory concerns in the expanding Chinese market, led to a minor market correction for SOL in May 2021, similar to many other cryptocurrencies. During this correction, SOL's price nearly halved from its mid-year high, falling below $25 in July 2021.
  • Rally and rise (mid-2021): After the market correction, SOL's price started to recover, and the project gained significant momentum that propelled it through the rest of 2021. The price of SOL and other leading cryptos rocketed from the beginning of August, driven by positive developments, increased adoption, and growing interest from investors and developers. By November, SOL had peaked at a price of over $250.
  • Correction and consolidation (late 2021–early 2022): Echoing the broader crypto market correction in late 2021, SOL's price also underwent a period of consolidation. After retreating from its highs, SOL stabilised in the $100-$150 range by early 2022.
  • Descent and decline (2022): The start of 2022 saw a sharp decline in the price of SOL, a run that only ended midway through the year when the price settled into a $30-$40 range. However, this negative trend took a further dive in November, following the collapse of FTX, with the price ultimately heading as low as $8 before year’s end.
  • Slow recovery (early 2023): The start of a new year saw Solana slowly crawling back from its 2022 lows. This ended with the price settling into a consolidated $20-$25 range that lasted through the middle of the year.
  • Optimism returns (mid-2023): The first signs of another upturn came in July 2023, with the price rising from the lows and pushing back through the $30 mark, albeit briefly. After continuing to trade in a fairly settled $25 range in subsequent months, October 2023 saw the price of SOL rise in a way not seen since 2021; a rapid increase through to December saw it break the $100 mark, then onwards to March 2024, where it once again broke through the elusive $200 barrier.

 

Solana price predictions 2024-2050

Source / Year

2024

2025

2030

2040

2050

Coinpedia

$90 - $500 $209 - $750  $987 - $1,672 * *

CoinMarketCap

$86^ $119 - $134 $769 - $903 $821 - $963 $1,141 - $1,311

DigitalCoinPrice

$392 $384 - $459 $1,315 * *

CryptoNewsZ

$97 - $119 $118 - $146 $214 - $525 * *

CoinPriceForecast

$669 $949 $1,451 * *

CoinJournal

$226^ $294^ $1,094^ $1,760 *

* Price predictions are not provided from this source for this year. Where no high-low range is provided, the highest available figure has been used, except where otherwise stated. ^Denotes an average price figure.

 

SOL price forecasts for 2024

The Bitcoin halving event in April 2024 sets the stage for a positive boost to the wider cryptocurrency market in 2024. For that reason, the analysts at Coinpedia are predicting a bullish trend that, if sustained through the year, may see Solana rise to a record high near the $500 mark. However, if the positive sentiment fails to stick, they predict SOL could end up settling in the $90 range.

Source

Similarly, an assessment by DigitalCoinPrice suggests Solana will break its previous record price during 2024, ultimately reaching the $392 level by the end of the year.

Source

Conversely, CoinMarketCap has taken a far less bullish view of the price of Solana in 2024, publishing figures that suggest an average price across the year around the $86 mark.

Source

CryptoNewsZ, a cryptocurrency news site, predicts that negative headlines in the early 2020s will restore investor confidence in cryptos, and the technology will continue to grow its user base. As such, they anticipate new all-time highs as the decade progresses. For 2024, however, they expect the average price of Solana to sit around the $109 mark.

Source

According to an analysis published in March 2024, CoinPriceForecast has an extremely optimistic view of the price of Solana, expecting it to hit a mid-year price of $411 and an end-of-year high of $669. This represents a +556% percentage change over 2024.

Source

Finally, CoinJournal's research and analysis predict that Solana's average price will hover around $226 throughout 2024.

Source

 

SOL price forecasts for 2025

Assuming Solana is able to continue making inroads into the DeFi space and attracting new startups, Coinpedia predicts its increasing competitiveness in the crypto space could see SOL match or outgrow Ethereum in terms of market capitalisation and send its price as high as $750. A caveat is that regulatory changes in the space could hinder growth, causing the price to rise only as far as $209. Between these bullish and bearish predictions, they have set an average figure for 2025 in the $580 range.

Source

DigitalCoinPrice agrees with the sentiment, suggesting that SOL can break through the $400 barrier and end up with a range of $384 and $459 across 2025.

Source

CoinMarketCap continues its positive but relatively subdued assessment of SOL compared to other analyses, suggesting a narrow range of $119–$134 across 2025.

Source

CryptoNewsZ also anticipates the value of SOL to increase in 2025, from a minimum of $118 to a peak of $146.

Source

CoinPriceForecast expects their bullish trend prediction of 2024 to continue, with a predicted high price for Solana in 2025 of $949 mid-year, before retreating slightly to the $855 level to close out the year.

Source

CoinJournal has assessed the price of Solana to continue increasing beyond its 2024 gains to reach an average price of $294 across 2025.

Source

 

SOL price forecasts for 2030

By 2030, Coinpedia predicts the price of Solana will have continued to increase across the decade, with a potential low of $987 and a projected high of $1,672. The predicted average for 2030 is $1,359.

Source

DigitalCoinPrice expects a similar price increase in the coming years, ultimately reaching a price prediction of $1,315 by 2030.

Source

CoinMarketCap agrees with the positive sentiment but does not predict the price to have breached the $1,000 mark by the end of the decade. They have published numbers in the range of $769 to $903.

Source

CryptoNewsZ anticipates a stronger Solana in 2030 but also predicts continued volatility. Their price target suggests a low of $214 and a high of $525, with an average forecast of $369 for SOL.

Source

CoinPriceForecast anticipates that the general trend of the 2020s, where the price of SOL has increased year over year, will continue. They predict the price of Solana to have gone from $855 in 2026 to $1,451 by 2030, an increase of 70% over the five years.

Source

CoinJournal predicts that Solana will have continued its significant gains throughout the decade, intimately closing out 2030 with an average price of $1,094 per unit.

Source

 

SOL price forecasts for 2040

Looking forward to 2040, CoinMarketCap has gone with a comparatively pessimistic assessment. Despite believing the uptake of cryptocurrencies will increase and become a more common form of payment and transaction, they do not expect the price to break the $1,000 mark. Instead, they have published figures speculating that the price of Solana in 2040 will sit in a range between $821 and $963.

Source

CoinJournal has retained a positive outlook for Solana through the 2030s and into 2040, where they anticipate a potential average price of $1,760 per unit.

Source

 

SOL price forecasts for 2050

Given the difficulty of making such long-range forecasts, few analysts have published figures representing Solana price predictions for 2050. However, in the very long-term 2050 price predictions, CoinMarketCap has continued its overall view of a slow but positive price trend for Solana over multiple decades. They have stated a price range between $1,141 and $1,311 for Solana by the year 2050.

Source

 

Conclusion

Overall, the outlook for Solana appears positive through 2050, with analysts generally predicting year-on-year and decade-on-decade price increases. This optimism stems from Solana's robust and growing ecosystem, encompassing DeFi applications, NFTs, and more.

However, there's variability in growth projections. Some anticipate steady gains, while others foresee a continuation of the rapid pre-2023 growth, with volatility persisting.

Factors like mainstream crypto adoption and the regulatory landscape will significantly impact SOL's price.

 

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References to forecasts and past performance are not reliable indicators of future results.  

The images shown are for illustration purposes only. Data is sourced from third-party providers.  

This information is for educational purposes only and is not intended to be financial product advice or any investment recommendation. It is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation and needs into account. Axi makes no representation and assumes no liability with regard to the accuracy and completeness of the content in this publication. Readers should seek their own advice.  



Axi Team

Axi Team

The Axi team is full of people with decades of financial industry experience and knowledge of almost every aspect of trading. The Axi team blog, in addition to regular posts from our daily market analysis contributors, is a place to share wider insights and ideas. In this section, you’ll find posts about everything from forex education and helpful hints for new traders to product updates and important market announcements.


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