It's been another crazy few weeks for Solana (SOL -1.12%) as another outage hit the blockchain. But this time there was relatively little impact on the token itself as investors brushed off reliability issues as one-time events.
The reaction is telling for a cryptocurrency that's been tied to Sam Bankman-Fried and FTX's collapse and seen high-profile NFT projects leave for other blockchains. But amid it all, the Solana ecosystem continues to improve steadily. And that may be the best case for buying this token below $25.
It's all about speed
If you're like me and you think the blockchain will increasingly be used as a payment layer or verification of digital assets, there needs to be quick scalability and speed for transactions at a very low cost. Solana is the obvious choice.
As I'm writing, the Solana network is completing 4,600 transactions per second and Ethereum (ETH 0.47%) is processing 10.4 transactions per second. When it comes to speed, they aren't even comparable.
On the cost side, the story is similar. A transaction on Solana costs a fraction of a penny, even when the network is slow, while Ethereum costs multiple dollars.
Scalability is key for a blockchain, and Solana is already performing at a level Ethereum developers hope to hit years from now.
Value is with Solana
Blockchains and their associated tokens aren't created equal. Some have large staking rewards (like Ethereum) and others are built on proof of work, but I think there's a good case to be made that Solana's token is a great value relative to others.
I already mentioned that Solana is executing far more transactions than Ethereum. Yet, its market capitalization is $7.8 billion, compared to $190 billion for Ethereum.
Like other blockchains, the number of active users on Solana has fallen recently, but not as quickly as the token has dropped. That's a buying opportunity for long-term investors.
Questions persist
As much as I like Solana, there are long-term questions about the blockchain and ecosystem. Some developers still prefer Ethereum Virtual Machine-, or EVM-, related blockchains, and that means both Ethereum and its layer-2 blockchains will remain a top choice.
There's also downtime to be worried about, which Solana suffers from time to time. For example, the blockchain goes down for a few hours every few months because of an unexpected problem. I think these are growing pains for a blockchain moving as quickly as Solana, but it's still a concern.
Investors diving in now need to consider Solana's strengths and weaknesses.
If crypto goes mainstream, Solana will win
If the crypto market and Web3 do go mainstream, it's likely the winning blockchain will look a lot like Solana. The blockchain needs to be fast and cheap, and right now there's no competing blockchain with the scale of Solana at this high speed and low cost.
That's why I think it's a no-brainer under $25, and I continue to be bullish on what's being built on Solana.
Travis Hoium has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum and Solana. The Motley Fool has a disclosure policy.
FAQs
The primary reason to invest in Solana right now is that it could eventually become the next Ethereum (ETH -1.73%). Solana is a direct challenger to Ethereum in the Layer 1 blockchain space, and has been steadily gaining ground in every major niche, from decentralized finance (DeFi) to non-fungible tokens (NFTs).
Should I stay invested in Solana? ›
With its high throughput and low transaction costs, Solana provides a compelling platform for NFT activities, positioning it as a strong contender for leading the market in 2024. “It has an opportunity to end 2024 with the largest majority of NFT volume if it can continue its recent trajectory,” Tan says.
How high can Solana realistically go? ›
SOL price targets in 2025 exceed $300, the most bullish targets are in the $500 to $1,000 area. Realistically, Solana can go as high as $650 in 2025. There is a path for Solana to hit $1,000, late 2025 or in 2026, Solana's chart structure visualizes the path to $1,000.
Will Solana hit $500 dollars? ›
Solana Price Prediction 2025
This may bring the SOL price close to the highs of the current bull market, nearing the range of $380 to $450. However, before reaching the significant $500 mark, the SOL price could experience a new decline due to the exhaustion of bullish momentum.
How much will 1 Solana be worth in 2030? ›
Solana Price Prediction Table
| Year | Average Price* | Percent Increase |
|---|
| 2030 | $1,337.75 | -99.89% |
| 2031 | $1,999.33 | 0.00% |
| 2032 | $2,965.08 | 100.00% |
| 2033 | $4,297.50 | 100.00% |
8 more rowsTop Altcoins Set to Outperform Bitcoin and Ethereum: Solana (SOL), Toncoin (TON), and Cybro Leading the Charge. Many altcoins are poised to surpass the market leaders, Bitcoin and Ethereum. Among these, Solana (SOL), Toncoin (TON), and Cybro stand out. Investors are keenly watching these promising cryptocurrencies.
Why not buy Solana? ›
Despite being quite a bit more stable in comparison to smaller cryptocurrencies, in comparison to traditional investments like stocks, and even to larger cryptocurrencies like Bitcoin, Solana is indeed fairly volatile, and daily price movements on the scale of 5% are common.
Which crypto will boom in 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Bitcoin (BTC) | $1.32 trillion | $67,217 |
| Ethereum (ETH) | $389 billion | $3235 |
| Binance Coin (BNB) | $84 billion | $575.82 |
| Solana (SOL) | $82 billion | $178.27 |
6 more rowsOur most recent Solana price forecast indicates that its value will increase by 2.52% and reach $171.98 by July 27, 2024. Our technical indicators signal about the Bullish Bullish 87% market sentiment on Solana, while the Fear & Greed Index is displaying a score of 68 (Greed).
What could Solana be worth in 5 years? ›
Solana (SOL) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 178.60 |
| 2026 | $ 187.53 |
| 2027 | $ 196.91 |
| 2030 | $ 227.95 |
1 more rowSolana Price (SOL/USD)
| Year | Mid-Year | Year-End |
|---|
| 2025 | $271 | $352 |
| 2026 | $431 | $509 |
| 2027 | $458 | $517 |
| 2028 | $508 | $457 |
9 more rowsAt the beginning of 2030, the ETH price could reclaim its position of $10,000 and probably be above that level, establishing a robust upward trend. ETH might even bypass this all-time high of around $12,000 and set a new record. But, again, after reaching this peak, a crucial pullback might ensue.
Can Solana go to 3,000? ›
It has the potential to rise to $3,000 by 2030 and reach over $6,000 by 2050. Solana (SOL) might hit a new all-time high of $260 either this year or next, contingent on the success of the Firedancer upgrade, marking a pivotal 'all-or-nothing' moment for the cryptocurrency.
Is Solana the next Bitcoin? ›
Over the three years, Solana investment products took in 5% of the cumulative inflows relative to Bitcoin inflows. We view this 5% as our baseline scenario. Blue Sky: Solana's relative inflows have been much higher in the last two years, representing 31% and 9% of Bitcoin inflows in 2022 and 2023, respectively.
How high can Solana go in 2024? ›
Solana Price Prediction 2024
| Solana Price Prediction | Potential Low ($) | Potential High ($) |
|---|
| Solana price prediction 2024 | $90 | $500 |
Our most recent Solana price forecast indicates that its value will increase by 2.52% and reach $171.98 by July 27, 2024. Our technical indicators signal about the Bullish Bullish 87% market sentiment on Solana, while the Fear & Greed Index is displaying a score of 68 (Greed).
What is the top prediction for Solana? ›
Seeing this, Martinez has openly predicted that Solana is on the verge of a big breakout, as it may hit the $1,000 price level. Solana is currently trading at $178.45, and it needs to increase by almost 461.80% to hit the $1,000 level. Surprisingly, this percentage increase is quite similar to the one in 2021.
Should I buy Bitcoin or Solana? ›
Solana has outperformed Bitcoin over the past several years. Its speed makes it a popular choice for Web3 developers. Its biggest headwinds could dissipate in the near future.
