Key Takeaways
- Since its cycle low in Nov 2022 around $10, Solana has outperformed Bitcoin and Ethereum.
- Much growth and adoption in the Solana ecosystem has been attributed to increased investor interest and memecoin growth.
- Key fundamental and technical growth of Solana and its ecosystem gives crypto analysts hope that the price will hit at least $500.
The last two years have been phenomenal for Solana holders and for its ecosystem, which witnessed tremendous growth after the collapse of FTX. The price of Solana dropped from its high of $253 to a region of $10, as many thought the Solana project and its ecosystem would return to the ashes.
From that moment, in the thick of the bear market, Solana and its ecosystem have recorded a staggering 2,143% growth since the collapse of FTX as this article analyses some key metrics for such growth and a potential price target of Solana token and its ecosystem.
Solana Comparison With Bitcoin And Ethereum Over Two Years
Source – SOL Comparison With Major Cryptos From Glassnode
Over the past four years, Solana has attracted liquidity and investors into its ecosystem due to its low fees and high throughput. Solana recorded an average of 344 best performance days out of 727 trading days, hitting better ROI than major cryptos such as Ethereum and Bitcoin.
The 2021 bull cycle saw Solana outperform many crypto assets, rallying from its list price of around $2 to a high of $253 before suffering a significant drop below $10 during the crypto bear season and subsequent collapse of FTX. However, it has since shown how strong its technical and fundamental factors are, with many projects exploring the Solana ecosystem.
Memecoin Effect On The Solana Ecosystem
Source – SOL Ecosystem Attracts Liquidity From Glassnode
The emergence of memecoin has ushered an influx of free liquidity into the Solana ecosystem. It has attracted investors and put its ecosystem ahead of major crypto assets such as Ethereum with a substantial flow of capital. Since 2022, Solana’s capital flow has surpassed the likes of Ethereum by a wide margin.
With much adoption and growth in its ecosystem, many crypto analysts have no doubt speculated that Solana’s price could rise as high as $500-$1000 in the coming bull cycle.
Solana Technical Analysis For Today, Tomorrow, And 2025
Source – SOL Technical Analysis From TradingView
After rallying from a low of $10 to a new all-time high of $265, crypto analysts have high expectations as speculations hit the $500 figure and the possibility of rallying higher.
With the price of SOL looking strong above $170, which is acting as strong support for the price, there are chances of SOL trending higher if $170, acting as support, holds.
Solana’s current price could be mouth-watering when it hits new highs above $500 in the coming months. On-chain analysis shows investor interest in Solana has gained much volume, as this token remains a prospect for addition to the portfolio.
Memecoins thriving in the Solana ecosystem would continue to push its price to new highs, as meme coin growth has since hit new highs after migrating to the Solana ecosystem.
