Solana
Solana at $1,000? The analyst predicts an increase of 47x!
- Raoul Pal sees Solana reaching as high as $1,000, outperforming Ethereum.
- Solana’s fundamentals show that the asset may be just ready for this rise.
Solana [SOL] has so far demonstrated a significant rise, marking an increase of over 600% since the start of the year. Currently priced at $174, SOL saw a 5.1% rise over the past 24 hours and a modest 0.8% rise over the past week.
This growth reflects a broader trend of increasing investor confidence and market activity within the sector.
Market forecasts and analyst opinions
Amid this positive trajectory, renowned financial analyst Raoul Pal, founder and CEO of Real Vision and Global Macro Investor, sharing his ideas on the future potential of cryptocurrencies like Bitcoin, Ethereum and Solana.
Pal identifies these assets as “tried and tested,” suggesting a strong future for these digital currencies in a still-volatile market.
Raoul Pal’s analysis points to a bullish future for Solana, forecasting a potential increase of up to 47x from its previous lows, with price targets between $750 and $1,000 per SOL.
These forecasts highlight not only Solana’s performance, but also its growing importance as a competitor to Ethereum [ETH]. Pal is also bullish on Ethereum, expecting it to surpass its all-time highs by 2025.
Pal attributes these potential gains for SOL to a combination of increased usage and technological advancements, particularly highlighting the development of “Fire Dancer,” a scalability solution for Solana.
He draws parallels between current market dynamics and Ethereum’s rise in 2020, suggesting that a similar trajectory could be on the horizon for Solana. Pal particularly noted:
“If you go back to 2020, Ethereum started to stabilize and then started to outperform starting around the summer. It really started to pick up towards the end of 2020 and then in 2021 it went ballistic, you know, it went into complete banana mode. I think we’ll see something similar.
Pal also highlighted the role of NFTs in Solana’s significant potential growth, suggesting that most current memecoin investors have already engaged in NFTs, highlighting Solana’s creation of low-cost NFTs and anticipating innovative new uses for these in the future.
The analyst noted:
“Someone is going to find another use for a non-fungible token, whether it’s a specific piece of art or something culturally relevant that functions in the same way as a coin of currency, and you can buy them for free.”
Fundamentals: Is Solana Ready for 47x?
Current market data supports Pal’s optimistic view. Open interest in Solana, a futures market liquidity indicator, recently increased by 7.69%, reaching a valuation of $2.62 billion.
This increase in open interest, coupled with a 20% increase in volume, indicates growing interest from traders, potentially paving the way for further price increases.
Source: Coinglass
Additionally, according to Solscan, the number of active addresses for Solana has seen a steady increase, from less than 800,000 last month to more than a million today.
This growth in active addresses indicates an increase in user engagement and adoption rate, which could signal network strengthening and potentially higher demand for SOL.
Source: Solscan
AMBCrypto recently reported that Solana managed to surpass Ethereum in active addressesalthough Ethereum continues to dominate in terms of transaction volume.
Read Solana (SOL) Price Prediction 2024-25
Meanwhile, volatility measures of Feeling show a continued downward trend after a recent increase in April.
This decrease in price volatility suggests a stabilization of Solana’s market price, which could attract more conservative investors looking for less risky crypto assets.
Source: Sentiment