Solana: VanEck’s 10,000% Upsurge Prediction for SOL Price Could be Flawed

Solana: VanEck’s 10,000% Upsurge Prediction for SOL Price Could be Flawed
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Key Insights

  • VanEck, a multi-billion dollar asset fund, predicts that Solana will hit $3,200 by the end of the decade.
  • VanEck cites Solana's high transaction throughput and upcoming FireDancer upgrade as reasons for its bullish prediction.
  • Sam Bankman-Fried, the founder of FTX, held a significant amount of SOL before the company collapsed.
  • FTX is now liquidating its Solana holdings to pay back customers, which could put significant pressure on the price of Solana.
  • This pressure could hinder VanEck's Solana price prediction.

A lot has been going on for Solana, both on and off-chain.

In a recent report, VanEck, a multi-billion-dollar asset fund revealed a "super bullish" prediction for the altcoin, and traders everywhere continue to talk about it.

SOL, one of the most popular altcoins in the market, has been on a tear lately, surging by an impressive 47% in recent weeks.

VanEck's 10,000% Prediction for Solana

VanEck, the asset fund manager predicts that Solana will hit $3,200 by the end of this decade (around 2030).

However, VanEck's predictions do come with other more "insane" predictions aside from price.

The asset fund predicts that SOL might become the first blockchain to successfully onboard more than 100 million users.

VanEck says that Solana has one of the highest transaction throughputs of any blockchain platform. So far, Solana is capable of processing up to 65,000 transactions per second.

This makes it well-suited for a variety of applications, including DeFi, NFTs, and Web3.

Coupled with its upcoming FireDancer upgrade, Solana is expected to further improve in terms of performance and scalability.

However, there might be reason to believe that a SOL winter might hinder this 10,00 price rally.

Sam Bankman-Fried Enters The Picture

Did you know that at the time of FTX's collapse, Bankman-Fried's Alameda research held about 13% of Solana's circulating supply?

FTX held 13.25% of Solana's supply
FTX held 13.25% of Solana's supply

This explains why Solana declined so drastically from $40 to under $10 in a matter of hours when both companies went under.

Recall that a few months ago, FTX got permission from a court to sell of about $3.4 billion worth of crypto, including about $1.16 billion worth of SOL.

Two weeks ago, CoinMarketCap, via a tweet, also reported that FTX had sent about 5.5 million SOL (worth about $150 million in USD) to Figment, a staking service.

Bankman-Fried Had Been Buying Solana For $0.2 Per Coin

On January 9, 2021, SBF famously made the offer to purchase every last SOL Token for about $3 per in a post on Twitter.

However, quite recently on Friday, October 27 in a court hearing, SBF revealed that he had been investing in SOL far earlier than that.

According to the defendant, SBF had started buying SOL when it was only worth about 20 cents a coin.

According to SBF's testimony, Alameda Research also provided the funds for this SOL investment, and that he "believed the funds came from both third-party lenders and Alameda's operating profits."

What Does This All Mean?

When FTX crashed, it left a withdrawal backlog of bout $10 billion in unpaid customer funds.

Quite recently, FTX also announced a "plan" to pay customers back about 90% of all the funds they lost during the November 2022 collapse.

This "plan", while unclear, will undoubtedly involve massive selling of the company's assets including crypto.

And according to the court approval FTX got to sell off its SOL tokens, the company now has the freedom to liquidate about $200 million worth of crypto every week for the next few years until the $3.4 billion stash becomes completely sold.

This puts significant pressure on VanEck's SOL price prediction because such a massive flood being released into the market over the next few years is bound to put significant weight on the price of SOL.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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