Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments, including Bitcoin, are highly volatile and risky. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. The views, thoughts, and opinions expressed in this article belong solely to the author, and not necessarily to CrytoCompare.
Solana Labs is a relatively new company founded by Greg Fitzgerald and Anatoly Yakovenko in 2017. They developed a unique technology known as the blockchain ecosystem, which is fast, secure, and completely free.
Solana offers some impressive features. Since this technology is open to everyone worldwide, it can be used to conduct financial transactions. The Solana Foundation sponsors several finance-related projects, online shopping, and other areas of interest. They aim to simplify online payments and make them available for everyone, and their technology is helping to encourage this goal.
Despite its potential for varied uses, investors have conflicting thoughts about whether it is a good investment or just hype.
Is Solana a good choice for investment? How high can Solana price go by the end of this year?
Let us find out below.
In 2017, Anatoly Yakovenko started a technology company called Solana. The company created a SOL digital token and sold it in private and presale rounds. However, during the final presale round in March 2020, the token went for $0.22. After listing on exchanges, it shot up fast.
The Solana price traded between $0.50 and $1 until July 2020. It went from $1 to $10 in March 2021 after breaking $1 in July. While Solana became traded on exchanges, venture capitalists still poured money into the company. As of June 2021, Solana got $300 million from Andreessen Horowitz, Polychain Capital, and Almeda Research.
As a popular cryptocurrency platform, Solana saw a lot of interest early on, which boosted its value. As of November 2021, it was worth over $260 per coin. As the cryptocurrency market went down, Solana's value also decreased. The situation worsened when the founder of another company.
There have been a lot of big investors and venture capitalists influencing SOL's value in the past. But lately, SOL prices have been dropping because these whale investors have stopped buying them.
The value of SOL will go down a lot if they win. If the government wins, it will become a security. Also, Solana could be more decentralized, so only a few people can run it.Because of these things, SOL might also go down in price.
The Solana blockchain is not good for what it is supposed to be used for, so Solana's growth potential is limited. But if these issues are fixed, Solana's user base could grow, driving the price. Even with a 93% decline.. There is still a lot of demand for this blockchain so it may recover much of its value. SOL's price could be affected by the broader cryptocurrency market. Solana's performance generally follows the market, but much depends on it.
Solana's market cap is currently worth $7.4 billion. When it comes to short-term SOL trades, they could be doing better. Many cool things are happening in the SOL market, like decentralized exchanges, NFT marketplaces, etc. Unfortunately, some profit-taking has not increased the price of SOL coin as much as we would like.
If you come across some predictions about the SOL coin, you should be aware of them. By the end of this year, it could be trading at around $49.25, and by 2030, it might hit a maximum price of $232.42. Another prediction says that by 2023, it could be trading at $104.3. Some experts also think that by 2025, it could reach $80.59. It is good news for SOL investors, but it might not be as profitable if the price goes down.
Final words: What will be the price of Solana by the end of 2023?
SOL could be worth around $48.07 in 2023 and $19.79 in 2028, feel market experts, but it’s worth noting its value could also drop significantly. SOL tokens will trade for about $33.93 on average according to these estimates, and there is always a chance it could go up by more than 100% or lose nearly all of its value.
A digital currency like Solana is powerful and innovative. However, experts predict that it will most likely not reach its previous all-time high by 2030. It is because investors and other groups invested a lot of money into it.
Featured image via Unsplash