Altcoins
The SOL analyst now targets $1,000
Following Bitcoin and other altcoins like Ethereum, Solana is surging, recovering from heavy losses in June. While buyers have yet to reclaim the $155 support level, the expansion in recent days has seen the coin add 25% after its early July crash.
Is SOL getting ready for $1,000?
These encouraging gains in the last few days have traders predicting big gains in the coming days and weeks. Referring to X, an analyst She said the coin would easily be more than 6 times above spot rates, reaching a high of $1,000 in the next bull cycle.
As things stand, it is clear that SOL is already in an uptrend. At the height of the bear market in 2022, the FTX and Alameda Research crash saw SOL plummet to $8. The coin has recovered in recent months, especially starting in H2 2023, reaching $210 in March 2023.
However, the cooling of the last three months has not negated the primary uptrend. If anything, the buyers are still in the driver’s seat, and even with the recent losses, SOL is still up about 8x from October 2023.
Several factors could push Solana higher, even above the $220 it saw in the last bull cycle of 2021. Much of this will be driven by Solana’s surge in adoption and rise as the third most valuable smart contract platform, trailing only Ethereum and BNB Chain.
As the home of meme coins, Solana is emerging as a platform of choice for developers and traders. Most point to its high scalability and low transaction fees.
At the same time, because there is no need to use off-chain solutions, some argue that Solana may be more secure than layer-2 Ethereum platforms like Base.
Solana dominates Ethereum, hopes for spot ETFs
The surge in meme coins has pushed Solana’s on-chain activity higher, as evidenced by rising DEX volumes.
DeFiLlama data Shows that Solana dominates Ethereum in daily and monthly DEX volume. On average, these DEXs process over $13 billion each week.
If meme coin prices recover, surpassing the $65 billion peak seen in recent months, reading from CoinMarketCap dataSolana will likely stretch Ethereum, consolidating its position. Like BOME, WIF, BONK and other Solana meme coins are among the most active and valuable.
While the U.S. Securities and Exchange Commission (SEC) has previously stated that SOL is an unregistered security, certain changes could call this prediction into question.
Recently, VanEck and 21Shares filed with the regulator to approve the Solana spot exchange-traded funds (ETF). The application is still in its early stages, but the final decision will be made by the end of the first quarter of 2025.
Feature image from DALLE, chart from TradingView