Solana’s SOL coin lost more half its value in the wake of the collapse of the FTX crypto exchange in November 2022, but has recently managed to mount a relative comeback, climbing from $8.39 on 29 December to $15.73 as of 15:15 UTC on 11 January.
Solana was among the first to introduce a proof-of-history (PoH) algorithm, which allows the blockchain to operate quickly while staying secure and decentralised. Solana’s main goal was to create an open-source project that implemented a new, high-performance, permissionless blockchain. Solana is powered by its native cryptocurrency. SOL is used to pay for transaction fees and any purchases in the Solana ecosystem, as well as for staking.
However, in 2022, Solana suffered nine outages in one two-month period, seven of which were described as “major”. Solana’s problems came about, at least in part, because of its ties with FTX. On 14 November 2022, Solana admitted it had assets worth $1m stuck in FTX when the exchange went down.
SOL price history did not show good results in 2022:
- the price dropped in response to the update of 26 May, from $47.98 on 25 May 2022 to $43.49 on 26 May and $40.98 on 27 May;
- then the token fell to a low of $26.06 on 14 June 2022;
- the token rallied to $47.10 on 19 July, but was unable to reach the $50 level and slipped back to $42.40 at the end of July;
- the price collapsed to $18.81 on 10 November 2022 before moving down to trade at a low of $15.51 on 11 November after the FTX bankruptcy announcement;
- after that the price dropped substantially, reaching $8.14 on 29 December 2022;
- however, it rallied to $17.36 on 9 January before falling back down to around $16.10 on 12 January 2023.
When speaking about any predictions for 2023, we have to remember that price forecasts, especially for something as potentially volatile as cryptocurrency, often end up being wrong.
CoinCodex had a rather pessimistic short-term solana price prediction for 2023: the coin could drop to $15.25 by 17 January before falling further to $14.90 by 12 February.
DigitalCoinPrice was more positive: the token could trade at around $34.24 and its solana price prediction for 2030 saw the coin potentially climbing to $159.98.
CoinPriceForecast prediction was also somewhat optimistic: the coin could trade at $29.89 by the end of 2023 and by 2025 the price could reach $38.87.
Wallet Investor, though, does not support positive tendencies: the coin could potentially fall to somewhere between $5.87 and $5.88 by January 2024.
We have to pay attention to the fact that cryptocurrency markets remain extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours, and even harder to come up with a long-term target price. So, the only advice in this situation would be to always do your own research and look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any trading decision.