2022 has already started and it is offering great opportunities to investors that would like to buy Solana (SOL) and other cryptocurrencies. Investors would like to understand what analysts say about Solana (SOL) price prediction in 2022. There are many things to take into consideration that we will be discussing in this blog post.
In the next sections, we will not only talk about what Solana (SOL) is but also what the market expects for this virtual currency in the coming months and years. The crypto market continues to evolve and move forward and Solana (SOL) is being part of the current market trend, But what will happen in 2022 and beyond?
What is Solana (SOL)?
Solana is a blockchain network that wants to offer cheap and scalable solutions to developers, investors and users. This comes at a moment in which decentralized solutions have been facing different types of scaling issues.
For example, Ethereum (ETH), the second-largest cryptocurrency in the world, has been facing issues related to scalability. Indeed, the network was not able to scale and it became highly congested. A simple transaction on this network cost more than the value of the transaction itself, hence, users decided to move to other projects, and Solana was one of them.
Solana has developed a unique blockchain network that does not have to get worried about congestion. This could be one of the best things to reduce congestion in the cryptocurrency market. Investors and users can deploy their smart contracts on the Solana network knowing that they are going to pay low fees (including lower fees than on Ethereum) and that they will not have to wait hours for transactions to be processed.
Hence Solana solves the scaling problem that has been present in the crypto market for several years. It is now just a matter of time to see Solana grow and take a large part of the crypto market if its solution proves to be among the best.
Solana (SOL) Fundamental Analysis
We need to focus on Solana’s fundamental analysis as well rather than just on the technical aspects of this virtual currency. One of the things to take into consideration for Solana is related to Ethereum 2.0. This could be one of the worst things that could affect Solana’s price in the coming years.
Solana’s advantage right now is related to the fact that it offers faster and better solutions than Ethereum and other blockchain networks. If the network fails to properly compete against Ethereum 2.0, then we could see the price of Solana falling. Users might move from SOL to ETH as they realize that it would not be cheaper to send and receive transactions on Ethereum.
Solana has been growing in the crypto market as a solution that offers the best scaling services in the market. If Ethereum 2.0 is not released to the market or it fails to achieve what it was expected, then we could see Solana becoming the leading network in the cryptocurrency space.
As its solutions become more useful, SOL demand could grow, pushing the price of this digital currency higher. But this remains to be seen as ETH 2.0 has not yet been released to the market. A breakthrough on this blockchain ecosystem could change the way in which we think of the cryptocurrency market. However, this is something that would require a lot of work and that might not happen at all.
Nevertheless, understanding that Solana could eventually decouple from Bitcoin and other digital currencies is definitely bullish for the next few years, especially if there is a general bear trend in the crypto space.
Solana (SOL) Price Analysis
Let’s now focus on Solana price analysis in recent years. Solana was released in 2020 and it has been operating since then. The digital currency had a relatively flat 2020 with a strong price increase at the end of the year. This was one of the first bullish expansions experienced by this virtual currency.
In this first bull run, the digital currency moved from $0.50 to over $4.5 in a matter of weeks. But this price would now be considered cheap. During the second half of 2020, the digital currency entered a bear trend that pushed the price lower to $1.5.
But things became very positive after that. The cryptocurrency continued to move higher in early 2021 and throughout the whole year. The coin first hit 15 per coin in February 2021. After that, SOL entered an accumulation period for an entire month.
A new move towards $55 allowed the coin to become one of the largest in the market in May 2021. We already see how fast this cryptocurrency expanded in the market. But that was not all. The digital currency started moving higher once again in August 2021. The coin reached another all-time high of almost $190 in September and it surpassed $250 in November.
Now, the coin has been in a downward trend for several weeks now. It is just a matter of time to see what could happen with this virtual currency in the coming years. Basically, the coin has reached the lowest price since mid-2021, which means that we are in a downtrend that seems like it could last for many more months.
Despite the fact that the coin could bounce back from these levels, it might be very difficult for Solana to do so without the general market moving higher. It is very important to understand what Bitcoin (BTC) and Ethereum (ETH) do if we want to see what could happen with Solana. As we already know, Bitcoin defines the direction of the market and altcoins usually follow.
Altcoins tend to exaggerate Bitcoin moves. That means that if Bitcoin moves higher, then altcoins move even higher. But the same thing happens if Bitcoin falls: altcoins fall even further. There could be a time for a decoupling from Bitcoin, but this could happen only if there is a massive improvement or breakthrough on the Solana ecosystem. It is not impossible but it is definitely something difficult.
Solana (SOL) Market Price Prediction
It would also be very important to analyse the evolution of the price of this digital asset in the coming years. It is very important to understand whether it still has the possibility to attract new investors or not. But as we have seen, there are some things to take into consideration when it comes to this digital currency.
There is a lot to be paying attention to in the cryptocurrency market. Solana would not only focus on different fundamental aspects but also on the technical side of digital assets. Would it be able to decouple from the general cryptocurrency market if there is a new bear trend? This might be somehow difficult for Solana.
As we have seen, the virtual currency has been always following the general trend of the cryptocurrency market. That means that investors react to Solana depending on the market’s direction. Moreover, the cryptocurrency market works with different trading cycles.
Being able to understand how these cycles work would be very important for Solana. This would help us understand whether the coin would continue growing in the coming years or if it would enter a new bear trend.
Solana (SOL) Price Prediction 2022
When it comes to Solana’s price prediction for 2022, we should know that the year started in a negative way for this virtual currency. We see that the whole market has moved downwards and this could affect the whole 2022.
According to data shared by CoinGecko, Solana (SOL) has fallen to $100 per coin. This represents a price decrease of 60% from its highs a few months ago. If the bear trend continues, we could see Solana (SOL) falling below $100 and reaching its lowest price in over 6 months.
This situation is expected to have an impact in 2022. The market could have started with a trend higher but things changed in recent weeks. February and the last days of February could see a recovery from the lows recently seen. However, the general trend seems to be downwards, similar to what happened with digital assets in 2018 after the bull market in 2017.
And of course, this could definitely have an impact in the coming years. This is why we continue to analyse Solana’s price prediction for 2023 and further.
Solana (SOL) Price Prediction 2023
Making price predictions for the coming years in the cryptocurrency market is definitely difficult. But we will focus on different market trends that would let us understand what could happen in the future with this virtual currency. The first thing that you should take into consideration is that if there is a bull market in 2022, then we should think about a bear trend in 2023.
Let’s not forget that Solana has already been in a bull market in 2021, which means that there have been large inflows of money to the cryptocurrency market over the last years. We also know that the market might have to make a correction, which could come in 2023.
Solana (SOL) Price Prediction 2024
Things can also continue to be bearish in 2024. However, it might not be as hard as during 2023. In 2024, we could see Solana (SOL) recovering from a bear trend that could have started in mid/late 2022 or 2023. If that happens, we then would know that in 2024 we could see a market bottom and a very weak recovery.
This recovery could be enough for investors to understand that the market is now moving higher and that there could be a new bull trend in the coming years. Remember that we are not able to predict the way in which the market works, but we could speculate with price fluctuations according to what happened in previous years.
Solana (SOL) Price Prediction 2025
When it comes to Solana (SOL) price prediction for 2025, we can only expect bullish things. If there was a bull market in 2022, then we could see 2023 and 2024 as bearish years. Usually, bear markets take two years to be completed, hence, we could see a bullish 2025 for Solana (SOL).
It would be key to know that there have been very well defined trends during previous years. This could help us understand if there has been a trend change or not. 2025 could be a very positive year for Solana that could hit new highs or continue its growing path for the next few years.
How to Buy Solana (SOL)?
This is a clear set of instructions on how to buy Solana in most cryptocurrency exchanges around the world.
Step 1: Search for a Cryptocurrency Exchange and Open an Account
The first thing that you have to do if you want to buy Solana is creating a cryptocurrency exchange account. There are several platforms around the world that will let you buy SOL using your local fiat currency.
If you have found a cryptocurrency exchange that lets you deposit funds and buy Solana, then you should go ahead, open an account and enjoy the services offered by this platform.
Step 2: Deposit Funds
Now that you have a cryptocurrency exchange account, you can deposit funds and buy Solana. You should deposit your local fiat currency and make sure that you are able to buy SOL using it. In some cases, you will have to sell your fiat currency for another digital asset and use it to buy SOL. This would depend on the exchange and the trading pairs that they have available.
Step 3: Buy Solana (SOL)
You can now buy SOL with the funds that you have deposited. Investors can create a market order or a limit order depending on their needs. While a market order will execute immediately, a limit order would wait for a specific price to be reached before getting executed.
Frequently Asked Questions (FAQ)
This is a list of the most commonly asked questions about Solana and SOL:
What is Solana (SOL)?
Solana is a blockchain network that offers better solutions than legacy crypto networks such as Ethereum. The goal is to offer advanced smart contracts in a scalable environment with low fees and fast transaction times.
Difference Between Solana and SOL
Solana is the blockchain network and SOL is the digital asset that powers it. This is similar to how Ethereum and Ether work.
Where Can I Buy Solana (SOL)?
You can buy Solana at any cryptocurrency exchange around the world that supports this digital asset. Some exchanges would require you to deposit fiat currencies while others would only accept crypto.