Solana price prediction, crypto analysts are predicting SOL to hit $200 and even suggesting there could be a new ATH in the coming months. The reason? Rising Bitcoin values will help Solana price on its way up.
From H2 2023, Solana has been a standout coin. Many expected the platform to fade to oblivion after FTX went under, and the court approved FTX managers’ request to liquidate SOL.
True, SOL plunged to as low as $8 in November 2022. It hovered around this level for months before a set of fundamental events, mostly news of FTX bankruptcy progressing smoothly, revived demand.
Solana Spikes 9X From September 2023 Lows
Currently, SOL is up nearly 9X from September lows, and prices are looking to retest the all-important psychological resistance line at $200 for the second time this year.
From the daily chart, SOL recently broke $160 following gains of May 15. There was a follow-through that has seen the coin add another 12% to spot rates of over $177.
(SOLUSDT)
While impressive, even possibly setting the foundation for a leg up to over $200, the pace at which the coin will explode largely depends on fundamental factors.
DISCOVER: The Best Solana Meme Coins to Buy in May 2024
The Road To $200: 3 Possible Drivers For Solana Price Prediction
Admittedly, if Bitcoin extends gains, investors will begin exploring quality altcoins, of which Solana is undoubtedly top brass.
Beyond Bitcoin, Solana is now a choice host for most meme coin activity. This uptick has undoubtedly boosted utility, attracting capital.
Over the last couple of months, developers have been gravitating towards the more scalable and low-fee Solana. According to a Coingecko report, Solana processed 1,504 transactions every second in April, surpassing Ethereum by 46X.
Even at this level, Solana still operates at a fraction of its theoretical maximum capacity of 65,000 TPS.
Moreover, Solana is set to be more stable, with engineers looking to activate Firedancer, a second client developed from the ground up by Jump Crypto, in the coming months. Once this update goes live, Solana will be more performant and reliable, with cases of network halts greatly diminished.
At the same time, the rise of SOL re-staking is gaining traction. Solayer saw $25 million in deposits just 45 minutes after launching Genesis 1, which was invite-only. The cap was $20 million. Solayer will operate the same way EigenLayer deploys on Ethereum.
Combined, analysts expect SOL to fly above $200 in Q2 2024.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
