As a seasoned researcher with extensive experience in the cryptocurrency market, I’ve witnessed the rollercoaster ride that Solana (SOL) has been on over the past few years. The latest surge in price after a sharp decline in June is reminiscent of previous bull cycles, and it’s impossible not to notice the parallels with Bitcoin and Ethereum.
Bitcoin and other cryptocurrencies such as Ethereum and Solana have been on an upward trend lately, with Solana making strides to recover following a significant dip in June. Although it has yet to surpass the $155 support level, the recent surge over the past few days has resulted in a 25% price increase for Solana after its early July decline.
Is SOL Preparing For $1,000?
Over the past several days, there have been noteworthy improvements that have led traders to anticipate substantial growth in the upcoming days and weeks. On X platform, an analyst expressed optimism, predicting that the coin’s value could effortlessly surpass its current price by a factor of six, potentially reaching as high as $1,000 during the next bull market.
Currently, it’s clear that Solana (SOL) has been on an upward trajectory. In the bear market of 2022, the fall of FTX and Alameda Research caused SOL to drop as low as $8. However, since the second half of 2023, the price of Solana has surged, reaching a high of $210 in March 2023.
Despite the cooling-down period of the last three months, the major upward trend has not been reversed. Buyers continue to hold the reins, and although there have been recent setbacks, Solana’s (SOL) price has almost quintupled from its October 2023 level.
Multiple elements may push Solana’s price upward, potentially surpassing the $220 mark reached during the 2021 bull market’s peak. A significant contributor to this growth will be the surge in adoption and Solana’s emergence as the third most valuable smart contracts platform, following closely behind Ethereum and BNB Chain.
Solana, known as the hub for meme coins, is gaining popularity among developers and traders due to its notable advantages. Primarily, it’s praised for its impressive scalability and affordable transaction fees.
Some people believe that Solana’s security may surpass Ethereum’s layer-2 solutions such as Base, as it doesn’t necessitate the employment of off-chain methods at the same time.
Solana Dominating Ethereum, Spot ETF Hopes
The surge in meme coin transactions has led to increased on-chain activity for Solana, as indicated by the rising volumes at its decentralized exchanges.
According to DeFiLlama’s latest data, Solana outperforms Ethereum in both daily and monthly decentralized exchange (DEX) trading volumes. On a weekly basis, these DEX platforms handle transactions worth more than $13 billion on average.
If the prices of meme coins rebound and surpass their previous peak of $65 billion as indicated by CoinMarketCap, Solana is expected to challenge Ethereum’s dominance, further solidifying its standing. Notable meme coins on the Solana network, such as BOME, WIF, and BONK, have been particularly active and valuable.
Despite the SEC’s past claim that Solana (SOL) operates as an unregistered security, potential adjustments could dispute this characterization.
VanEck and 21Shares have submitted proposals to the regulatory body for the launch of Solana spot exchange-traded funds (ETFs). The review process is ongoing, with a definitive outcome expected by the close of Q1 2025.
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2024-07-15 22:34