Altcoins
Bitcoin Will Hit $250,000, Solana Will Rise to $800: Here’s How and Why
A popular analyst raised his price target for Solana (SOL), forecasting a potential value of $480 by the end of 2025, with a high estimate of $800. Virtual Bacon’s latest prediction is based on several key metrics, including Solana’s supply and market cap. Solana currently has a supply of 579 million tokens with an annual inflation rate of 5.2%. By the end of 2025, this supply is expected to grow to approximately 625 million tokens.
In terms of market capitalization, the analyst’s projects that Bitcoin will reach a price of $250,000 by the end of 2025, with a market capitalization of around $5 trillion. Assuming Bitcoin maintains a 50% dominant position in the cryptocurrency market, which suggests a total market capitalization for all cryptocurrencies of $10 trillion.
Solana’s market cap has increased from 0.75% to 3% over the past year. Assuming it stays at this level, Solana’s market cap would be $300 billion, leading to a price target of $479 per token. If Solana’s market cap increases to 5%, the price could rise to $800 per token.
He said: “I had estimated a price of $240-$250 based on a lower market dominance assumption for Solana. However, with its current growth, I now expect Solana’s price to reach around $480, assuming a 3% market dominance. If Solana’s market dominance increases to 5%, the price could potentially reach $800.”
The reason behind this huge prediction
So how did Solana achieve such a dramatic increase in retail adoption? There are two main factors that played a significant role: the Solana Mobile initiative and Solana Pay.
Solana Mobile, which has been around for about two years, offers a mobile-first app store for decentralized applications, making it easier for new users to access and use cryptocurrency. This focus on the mobile experience has led many new users to choose the Phantom wallet over other options like Metamask or Coinbase.
Solana Pay, a micropayment solution, supports SOL tokens and stablecoins such as USDC and USDT. It has been integrated with Shopify for over a year and has recently introduced new features such as Solana Actions and blockchain links (Blinks). These initiatives are driving Solana’s retail adoption and improving its overall user experience.