Solana bounced back from the crypto slump in early August. Its recovery is higher than Bitcoin and Ether. Four experts share what will drive Solana's price next.
Solana is up 35% since the August 5 crypto flash crash, which sent token prices tumbling across the market.
Its rebound was larger than the recoveries posted by market leaders Bitcoin and Ether, which were 23% and 25% respectively over the same period.
Solana is up 45% since the start of the year – a higher increase than both Bitcoin and Ethereum.
However, unlike Bitcoin, it has not reached its previous peak price of $260, which it achieved three years ago.
Still, market watchers say the industry darling's price is key to a year-end rally.
Here's what four experts say will push the Solana toward a new all-time high price.
Arthur Hayes of BitMEX
Bitmex co-founder Arthur Hayes is bullish on Solana, at least in the context of the altseason — which the crypto industry calls an increase in the price of crypto tokens alongside bitcoin.
As of Tuesday, Hayes expects Solana to climb above $250, putting the price just $10 shy of the previous high. Blog post.
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There is a catch. Solana's price will only increase if Bitcoin and Ether rise above $70,000 and $4,000 respectively.
However, that could happen when US Treasury Secretary Janet Yellen unleashes a wave of liquidity, Hayes argued.
When the top cryptocurrencies rise, so does Solana's price.
Chris Burniske of Placeholder
Chris Burniske, co-founder of New York-based crypto venture firm Placeholder, is more bullish on Solana and expects it to reach $1,000.
Burniske called out a suggestion that caught his attention A traditionalist Price target, in recent X post.
X conducted a poll in July asking his followers to pick their biggest crypto holdings in Bitcoin, Ether and Solana. About one-third of the nearly 22,000 participants chose Solana.
Experts predict that the price of Solana will increase this year
The investor interpreted the result as indicating Solana's popularity among crypto investors as far as large-cap cryptos are concerned.
Large-cap cryptos represent market majors such as Bitcoin, Ether, Solana, and BNB, with values in the hundreds of billions of dollars.
Unigen Ajay Dhingra
While Bitcoin and Ether have garnered institutional interest this year with their respective exchange-traded fund launches, Solana has also attracted the attention of big-money players.
Ajay Dhingra, head of research at DeFi aggregator platform Unizen, attributed Solana's price performance this year to strong institutional interest.
Dhingra previously told News that Hamilton Lane's private credit fund and VanEck's complement to launch the Solana ETF is an example of Solana's appeal among institutional investors.
Athanasios Soutos of Kierak
Athanasios Soutos, Defy Ecosystem Lead at crypto market maker Keerak, echoed Dhingra's sentiment but focused on retail investors.
Soutos said News Solana's status as a major network for memecoin speculation represents retail hype.
If the trend continues and the new upgrade goes smoothly, Solana ether's current market value could reach $400 billion, Soutos said.
Solana's spot price is $853, based on Souto's estimate, given its token supply is at its current level.
Osato Avan-Nomayo is our Nigerian DeFi Correspondent. Got a tip? Contact him at [email protected].
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