Solana's price surged 20% in the last week, outperforming other cryptocurrencies.
Hedge fund manager, Daniel Choung predicts Solana will reach $200 by month's end. He believes it's the "best trade of this cycle."
Solana is benefiting from the bourgeoning meme coin activity and strong DeFi presence on its network.
The upcoming Firedancer upgrade also promises to increase Solana's speed and scalability, making it more poised to rally
Solana has been making waves as of late, outperforming the rest of the market with its 20% price increase over the last week.
Solana’s price
According to a major hedge fund manager, however, Solana might just be getting warmed up, and we might be poised to see further gains on the fifth-largest cryptocurrency by market cap.
Here are all the reasons why Solana might be ending May with a $200 price tag or more.
As we mentioned before, SOL has outperformed several other cryptocurrencies among the top 20 in terms of market cap.
Last week, the cryptocurrency beat Bitcoin directly, when it rallied by around 10% and hit the $170 zone, the highest level it has sat at in more than a month, before retreating to $166 and then breaking above $170.
All of this price action has contributed to the cryptocurrency's 20% surge in the last week, and more than a 40% price increase since the start of May.
Solana's 20% gain helps it stand out as the second-best performer among the top 100 cryptocurrencies, aside from Chainlink.
Chainlink emerged as the best performer with a 25% price increase after the news of a recent fund tokenization pilot partnership.
According to Daniel Choung, the co-founder of Syncracy Capital (a digital asset hedge fund) in a recent tweet, Solana’s strength and rebound from its previous price levels is “incredible” and has been the “best trade of this cycle”.
Solana to $200
In the tweet, Choung expressed optimism about Solana's potential, explaining that he believes the cryptocurrency can reclaim the $200 level by the end of the month.
Considering how Solana’s 2021 high of $260 is so close to the cryptocurrency’s current price action, we might be seeing some pretty interesting Solana price action soon.
The incoming price rally for Solana is more than just talk.
Solana is actively benefiting from the booming memecoin activity on its network, as well as the robust DeFi activity.
Solana’s TVL boom
Data from DefiLlama shows that after the massive crash in the network’s TVL between 2022 and 2023 after the FTX collapse, the Solana network has gained around half of the previous peak of $9.66 billion, without even hitting its all-time high.
This shows devotion on the part of the developers and users, regardless of the price of the $SOL cryptocurrency.
Moreover, Choung mentioned the upcoming Firedancer upgrade on the Solana network which is set to be a secondary chain client from Jump Crypto, that will make the Solana network faster and a lot more scalable—after CoinGecko recently crowned Solana as the fastest blockchain in the world, without said upgrade.
Solana is the fastest chain
Overall, Solana’s outlook seems to favour the bulls, and we might be seeing some interesting price action on the cryptocurrency going forward.
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