In 2021, SOL became one of the mainstream cryptocurrencies as it surged by 11,000%. This network is often thought to be the best substitution of alternative due to the fast execution of transactions at quite low fees. However, the token didn’t manage to hold the highest positions for a long time. In March 2022, it started falling and today it’s valued at around $40, while in March its highest value was $136.78. So, the question is, will SOL recover by the end of the year? This price forecast will try to answer this question.
Introduction to SOL
Designed in 2017, the project has been looking for effective solutions that will help developers mitigate the impact of issues they are facing on the biggest blockchains. Anatoly Yakovenko is the founder of this network.
What made it a real alternative, not just one more unknown crypto network? Unlike many other ecosystems, Solana applies a new working model, which is the proof-of-history consensus. This approach allows users to keep track of the event in historical sequence.
Such an innovative technology attracted not only developers. Investors also forecasted good prospects for the network and started investing in its reward coin SOL. It’s have been already acclaimed as a sustainable cryptocurrency that is now traded on major digital exchanges.
Will the SOL coin price go up in 2022?
What is to be a crypto investor? When you invest in crypto projects you have to analyze events around certain networks and predict their impact on the tokens. Here we have our key takeaways on the SOL price prediction:
- Solana is a network of two crypto exchanges increasing in popularity — Raydium and Serum. The reason why these DeFi projects are growing is that they offer lower gas fees than Ethereum. This might appeal to new developers and increase the supply of SOL.
- On the website of the network, it’s stated that the ecosystem has 1,871 validator nodes. At the beginning of the year, there were around 500 fewer. This means that the network is becoming more decentralized.
- Analysts say that the SOL token is showing promising price dynamics right now. SOL is bullish for long-term investors. If this trend goes on, the token will break the resistance level and might even raise to its all-time high at around 260 USD in 2022.
As we can see, the Solana ecosystem is growing and the SOL coin is becoming more attractive to investors. If there will be now disappointing news regarding the network, it has great prospects to grow and we see how it recovers the number of validators. If it keeps the same pace, new partnerships and integrations might appear. Analysts say that these growing dynamics can make the SOL token worth around $900 by 2025.
To conclude, today SOL has a good entry point for investors. When it’s valued at around $40, you can afford to buy more at a lower price. The project has nice prospects to grow and become more decentralized.
Although our estimation of the SOL future is positive, we cannot foresee the future in the volatile crypto world. Investments always involve risk. Consider all ifs and buts before investing in cryptos with DotBig.