Key Insights:
Solana reclaims the $200 levels and holds the price.
The growth in SOL-based memecoins and its efficient blockchain supports the growth of its token.
Experts predict SOL's price could cross $1000 in the medium to long term future, signaling a 500% growth potential.
Solana has gained 21% over the week and has crossed the levels of $200 at press time.
Solana Crosses $200
CoinMarketCap
The top Layer-1 blockchain has been one of the fastest-growing projects in crypto over the last two years. Since December 2022, Solana has grown from $10 to $200, beating several top Layer-1 chains like Ethereum, BNB, Dogecoin, and XRP.
Much of the credit goes to the presence of memecoins on the blockchain. Further, the Solana chain has also been a cheap and secure alternative of Ethereum for small denomination transactions.
However, things weren't always this easy. Solana had a very dysfunctional blockchain with frequent stoppages and unreliable validators. Further, as recently as April 2024, a very high number of scammers were active in the SOL ecosystem.
However, all of these could not stop Solana from reaching its highest price levels in 2024. From here, Solana's all-time high lies just 20% ahead at $260. Given the bullish state of the markets due to the US elections and the injected liquidity by the US Fed, SOL could cross $240 before this year ends.
Solana owes much of this growth to two major factors, i.e., memecoin markets and its efficient blockchain.
The primary reason that Solana was able to beat BNB and reach the fourth rank in cryptocurrencies was the memecoin markets. Top performers like BONK (1092%), POPCAT(8505%), and WIF (1319%) were the major drivers of this growth.
Just in October 2024, Solana was the most active blockchain, recording 120 million active users in the month, beating Ethereum.
All these high growth numbers would not have been possible if Solana had not fixed its sorry state of affairs in 2022.
The blockchain barely had a presence. Its network faced constant outages. It was not as scalable as it is today, and very few Dapps and DeFi protocols were interested in it.
Further, Ethereum was the only place where Memecoins thrived, BNB still had a much larger DeFi presence, and XRP had much better usage statistics due to the latters success in Latin America
Consisent on-chain development brought Solana from five outages in 2022 to just two in 2023 and a single outage in 2024. Further, the blockchain has a memecoin market worth $12.6 billion. The blockchain also has a mature DeFi market worth $7.11 billion beating BNB (4.89 billion), Tron ($6.73 billion) and even Bitcoin ($3.04 billion).
Veteran trader Jacob Canfield predicted a $1000 for SOL at the very start of this blockchain last year. He listed several reasons supporting his arguments.
Another trader who goes by the nickname CrowTrades sees Solana crossing $800 soon. This trader also presents detailed charts explaining his point of view.
Possibility of an Imminent Breakout in Solana
Tradingview
Solana is about to breakout from a long-term price channel between $125 and $202. The breakout would ensure Solana crosses $240 within 2024.
This expectation is based on two momentum indicators: RSI and MACD. The MACD already showed a major breakout on 7 November 2024, while RSI is about to break out of its level of 70, showing a super bullish near-term future for SOL.
In the short-term Solana could end up between $240 to $260 while reaching $300 in the medium term. By the next bull season, Solana would have easily crossed $1000 given the promise of a positive regulatory environment in the US under Trump.
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