A current analysis by crypto index fund manager Bitwise presents diverse forecasts for Solana (SOL), focusing on its rate of adoption and advancements in scalability. The report suggests that under an optimistic outlook, SOL’s value might reach a staggering $6,636 by the year 2030.
What Sets Solana Apart?
Presently, Solana ranks sixth among cryptocurrencies in terms of market capitalization. Over the past few years, it has seen significant ups and downs. The value of this digital currency took a significant hit due to the FTX crash, falling from its peak price of $250 in November 2021 down to as low as $9 in November 2022.
Even though the FTX crash caused a bear market, Solana (SOL) remarkably bounced back and reached a new all-time high of $263 in November 2024. Bitwise’s analysis indicates that SOL has considerable growth potential for the upcoming years.
As a researcher delving into the intricacies of Solana, I’ve discovered three key factors that underpin its investment appeal: a robust economy with sustainable foundations, an attractive environment for developers, and a track record of consistent execution. Notably, Solana has shown exceptional growth in comparison to other prominent smart contract platforms, particularly in price performance during 2024.
According to the report, Solana is often referred to as the “iPhone moment for blockchain.” Some of its outstanding features are its capacity to handle 65,000 transactions per second (TPS) and its affordable transaction fees. This impressive performance makes it a great choice for developing decentralized applications with high volume and low latency, such as decentralized exchanges (DEXs).
The graph shows that Solana’s transactions per second (TPS) is comparable to Visa’s and significantly higher than other popular smart contract platforms such as BNB Chain and Ethereum. Moreover, in the year 2024, there was a dramatic rise in daily active addresses (DAA) on Solana, exceeding the combined DAA of Bitcoin (BTC) and Ethereum (ETH), suggesting increasing acceptance among users.
As an analyst, I’ve observed that approximately 80.7% of the total Solana (SOL) tokens are currently in circulation, with the remaining 19.3% categorized as non-circulating supply. While there have been discussions about potential token inflation, it is comforting to note that Solana’s inflation rate diminishes yearly and is expected to fall to around 1.85% by the year 2030. This suggests a stable and controlled growth of the SOL token economy over time.
The SOL Bull Case
In simpler terms, this report uses Metcalfe’s principle to calculate the worth of Solana’s network. For those who aren’t familiar, Metcalfe’s idea suggests that a network’s value grows in relation to the number of its users squared. In other words, the more people using Solana’s network, the greater its value becomes (according to this report).
To make things easier for understanding, let’s consider the Daily Active Addresses (DAA) as the count of users, and the Market Capitalization as a measure of the network’s usefulness, expressed in monetary values.
Therefore, this report presents the pessimistic (bear), neutral (base), and optimistic (bull) scenarios for Solana. The bearish prediction for SOL suggests an accumulated yearly growth rate of approximately 35.1%, leading to a projected price of $2,318 by the year 2030.
In other words, just like the standard scenario assumes a Compound Annual Growth Rate (CAGR) of 47.2%, which leads to a price of $4,025 in 2030. However, the optimistic outlook for SOL predicts a target price of $6,636 by 2030, fueled by a CAGR of 59.1%.
The report indicates that the predictions we mentioned factor in the slowdown that typically happens when networks grow older and reach substantial size. As of now, SOL is trading at $214.86, representing an 8% increase over the last 24 hours.
Read More
- Who Is Returning on Days of Our Lives This Week?
- When Is the Nintendo Switch 2 Announcement Date? Reports Explained
- ‘As long as audience believes they’re husband and wife’: Pragya Jaiswal on working with Nandamuri Balakrishna despite double age gap
- Black Panther 3 Producer Gives Clarity on Denzel Washington’s Marvel Role
- Telegram Rolls Out ‘Stars’ for In-App Purchases
- Who Is Kendrick Lamar’s Fiancee? Whitney Alford’s Kids & Relationship History
- Dead Man’s Wire Cast Adds Colman Domingo to Gus Van Sant’s Hostage Thriller
- Solana Leaves Competition In The Dust: Blazing Speed To Fuel Price Surge?
- Bhairathi Ranagal OTT release: When and where to watch Shiva Rajkumar starrer as it marks world digital premiere
- Neil Gaiman Denies Sexual Assault Allegations in New Statement
2025-01-17 09:41