Solana crypto price prediction

Yahoo Finance reported on a survey of 50 Fintech specialists, predicting the price of Solana to be just over $5,000 by the end of 2030. The Solana price today is just over $50.

Is that prediction realistic, considering Solana’s history of massive bull runs – it’s also corrected around 85% from its 2021 all time high. Is the Solana bottom in?

What is Solana?

Solana is an open-source project designed to facilitate smart contracts and decentralised application (dApps) creation. It supports various decentralised finance (DeFi) platforms and non-fungible token (NFT) marketplaces.

The purpose of Solana is to provide more throughput than regular blockchains while ensuring minimal costs. The coin’s goal is also to overcome challenges developers face such as scalability, security and decentralisation.

Cryptoassets are a highly volatile unregulated investment product.

Can Solana Reach $5,000 by 2030?

Solana (SOL) has proven that its price can pump high in a short period. If you bought SOL in February 2021, you watched it rise more than 8,500% by November 2021 to reach an all-time high of $260. SOL retraced since, Solana’s price correction is equivalent to what Bitcoin did before it spiked again.

Reaching $5,000 from its current price, $50, would mean a 10,000% increase in Solana’s price in the next eight years. When looking at it like that, those gains don’t seem unrealistic since Solana has done just slightly less in several months. If Solana was to reach a price of $5,000 per coin, it would have a market cap of around $1.6 trillion.

That’s a lot of money that would have to pour into Solana and the crypto market. But the total market cap for crypto in the 2018 bull run reached $770 billion. When Bitcoin reached its all-time high of $69,000, the total crypto market reached a cap of just over $3 trillion. So the crypto market’s cap quadrupled from 2018 to 2021.

If history was to repeat itself and the crypto market quadrupled from the 2021 all-time high, it would reach a $12 trillion market cap. Gold has a market cap of $11.5 trillion, so the crypto market would surpass it. At that point, many Bitcoin maximalists would be convinced that Bitcoin is ‘Gold 2.0’.

Solana Price Prediction

The crypto trader below goes into some live technical analysis on the Solana price chart.

Upside Potential

Since reaching its blow-off top in November 2021, the Solana price has been in a bearish downtrend. So what would indicate that a possible reversal was on the cards?

Solana broke through its previous all-time high in August 2021 and then went to make a new one. The price continued rising for several weeks without any major correction before topping out.

A correction was inevitable, and the crypto market has shown that it retests the previous all-time high levels when it has reached a new one. That’s what Solana is doing by reaching $50. It has retested key support with a wick spiking down below the support, but a candle has not closed below the previous all-time high.

If Solana can hold key support, at around the $48 area, a reversal to the upside and new bull run are possible. We’ve also seen that the US Dollar Index (DXY) has pulled back, failing to breakout through key resistance. The crypto market has revealed that when the US Dollar Index loses value, crypto prices rise.

Adding NFTs to its platform has made Solana more attractive to investors. Couple that with its competition with Ethereum for the smart contracts market and advanced utility over meme coins, Solana is shaping up to take on the major players in the crypto market.

Investors should be careful when investing in any cryptocurrency as profits aren’t guaranteed. As the Terra (LUNA) crash showed, don’t over-invest in one altcoin – diversify into several DeFi coins.

Cryptoassets are a highly volatile unregulated investment product.

Read more: Solana Surging on Web3 Phone News Breakout Moment