Solana (SOL) Could Rise to $1.4B by 2025 (Analyst)

TL;DR

Solana saw strong gains recently, with some analysts predicting higher growth. The increased volume on the chain and TVL suggest strong user engagement, which can support future growth.

Is the expected rally plausible?

Solana (SOL) has been the best performing cryptocurrency (from the top 20 list) in the past week, with its price increasing by 11%. On October 24, it briefly rose to $178 (according to CoinGecko data), the highest level in nearly three months. SOL is currently trading around $171, while its market cap is well over $80 billion.

Price SOL, Source: CoinGecko

To put things into perspective, the market capitalizations of well-known entities such as British American Tobacco, Spotify, Marriott International, Mitsubishi Corporation and others are worth less than Solana’s.

According to some X users, SOL has yet to surprise industry participants with impressive gains. Titan of Crypto is among the bulls, noting the appearance of a “massive bull flag” on the asset’s weekly price chart. The analyst expects the staggering 700% increase to top $1,400 next year.

This technical analysis pattern generally indicates that buyers are temporarily stopping after a price rally. However, it also suggests that they could soon resume buying, increasing the valuation.

It’s important to mention that this price explosion would require SOL’s market cap to skyrocket to nearly $600 billion. Currently, the only cryptocurrency with an upper cap is market leader Bitcoin (BTC), which makes forecasting quite difficult (to say the least). Ethereum (ETH) comes in at just over $300 billion.

The Titan of Crypto forecast sparked a flurry of comments, with some X users describing the target as plausible. Others, however, claimed that these are “crazy numbers”.

Those are crazy numbers, think most likely 400-500 and everything above is a giveaway

— Fusel (@Fuselwhale) October 24, 2024

Take a closer look at Solana’s ecosystem

The latest SOL price appreciation aligns with the increase in on-chain trading volume on the network. DefiLlama data shows that number has been above $2 billion over the past six days.

Also, total value locked (TVL) at Solana soared to a 34-month high of more than $6.7 billion on October 24.

The resurgence could be considered a generally positive factor for SOL’s price, suggesting greater user engagement. A growing TVL indicates an increase in the amount of capital or assets held in Solana’s decentralized finance (DeFi) ecosystem. This could be seen as a sign of confidence by market participants, fueling further investor interest.

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