The self-dubbed ‘Ethereum Killer’ Solana is currently the ninth-largest cryptocurrency by market capitalization. The brainchild of developer Anatoly Yakovenko was launched in March 2020, implementing two consensus mechanisms, Proof-of-History (PoH) and Proof-of-Stake (PoS).
In December 2021, SOL peaked at an astonishing price of $258.93, gaining a mind-blowing 12,000% since its inception. As a result of this growth, Solana is now considered a formidable competitor to Ethereum.
Solana fans often cite the chain’s scalability as a major drive for its growth. In fact, SOL can process more transactions than all Ethereum-based blockchains combined.
At the time of writing, Solana was hovering just above the $30 price support, slightly recovering from its $28.48 low last week.
Earlier this year, Solana-based wallet provider Slope suffered an exploit caused by a third-party provider, which exposed the private keys of its users. The hackers managed to drain over $8 million from the affected wallets.
However, crypto-billionaire and owner of FTX, Sam Bankman-Fried, called Solana the “most token right now,” despite the issues the chain is frequently experiencing.
Many investors believe the actual value of Solana lies within its decentralized applications and NFTs, which proved vital to its steady growth over the last two years and attracted many investors and developers to migrate over from Ethereum.
Making price forecasts is no exact science, and many experts have different opinions. However, long-term trends can be derived pretty accurately from all known facts.
Therefore, if we consider all experts’ forecasts and current economic predictions, Solana (SOL) can be accurately forecasted to trade at a minimum price of $149.43 by the end of 2023 or early 2024. The maximum forecasted price analysts set at $209.81 by EOY 2024. As a result, the average price of SOL to change hands would be $179.62 between 2023 and 2025.
This price increase equals a solid minimum ROI of 487% if an investment is made at today’s price. Further forecasts till 2025 and 2030 offer even more staggering returns but are highly speculative.
Diversification is key
Veteran investors know that diversification into established and newer cryptocurrencies is vital to long-term success. As a result, analyzed on-chain data suggests that many SOL holders are investing in Uniglo.io, an upcoming Decentralized Autonomous Organization (DAO) that backs its protocol’s value with stablecoins like USDT, cryptos like Decentraland, and rare NFTs. Interestingly, the number of Solana wallets buying GLO picked up significantly with the launch of the final presale phase over the weekend.
Solana (SOL) remains one of the strongest blockchains in the industry and is likely to trade close to the $200 price mark in the upcoming years. However, it is always wise to be open-minded and diversify the portfolio with a mix of established coins and new, innovative DeFi projects like Uniglo.io.
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