TLDR
Bitwise predicts Solana (SOL) could reach $6,636 by 2030 in a bull case scenario
Solana can process 65,000 transactions per second, surpassing competitors like BNB Chain and Ethereum
Daily active addresses have exceeded the combined total of Bitcoin and Ethereum in 2024
Three core pillars support investment case: sustainable economics, developer attraction, and consistent execution
Current price is $214.86, showing strong recovery from $9 low in November 2022
Crypto index fund management firm Bitwise has released a detailed analysis projecting potential price targets for Solana (SOL) through 2030, with the most optimistic scenario suggesting a price of $6,636. The report examines multiple growth scenarios based on network adoption and technological improvements.
Solana, currently ranked as the sixth-largest cryptocurrency by market capitalization, has shown remarkable resilience following the market downturn associated with the FTX collapse. After falling to $9 in November 2022, the cryptocurrency has staged a powerful comeback, reaching $263 in November 2024.
The blockchain’s technical capabilities have played a central role in its recovery. Solana can handle 65,000 transactions per second, putting it in direct competition with traditional payment networks. These processing speeds come with notably low transaction costs, making it particularly attractive for high-volume applications like decentralized exchanges.
Network activity metrics support Solana’s growth narrative. Daily active addresses on the Solana network have surpassed the combined total of both Bitcoin and Ethereum, indicating robust user adoption. This metric serves as a key indicator of network health and usage.
The tokenomics of Solana present an interesting picture for investors. Currently, 80.7% of the total SOL supply is in circulation. The remaining 19.3% is classified as non-circulating supply. While some observers have raised concerns about potential inflation, Solana’s built-in mechanisms will reduce the annual inflation rate to 1.85% by 2030.
Bitwise’s analysis employs Metcalfe’s Law to project network value. This mathematical principle suggests that a network’s utility grows proportionally to the square of its user count. The firm uses daily active addresses as a proxy for user numbers and market capitalization to represent network utility in monetary terms.
The report outlines three possible scenarios for Solana’s future price movement. The conservative estimate, or bear case, projects a cumulative annual growth rate of 35.1%, leading to a price target of $2,318 by 2030.
Solana Price on CoinGecko
A middle-ground projection, termed the base case, assumes a 47.2% cumulative annual growth rate. Under this scenario, Solana would reach $4,025 by 2030. This represents a substantial increase from current levels while accounting for normal market cycles.
The most optimistic projection, the bull case, sees Solana achieving a price of $6,636 by 2030. This scenario assumes a cumulative annual growth rate of 59.1%. The report notes that these projections factor in the natural slowdown in growth rates as networks mature.
Technical analysis of Solana’s performance shows strong momentum. Recent trading data indicates an 8% increase over the past 24 hours, with the price settling at $214.86. This upward movement continues the trend of recovery seen throughout 2024.
Developer activity on the Solana network remains robust. The platform has attracted numerous projects across various sectors of the cryptocurrency ecosystem, from decentralized finance to non-fungible tokens.
The network’s sustainable economics have emerged as a key strength. Despite earlier concerns about network stability, Solana has demonstrated improved reliability and performance metrics throughout 2024.
Transaction costs on Solana remain consistently low, making it competitive for both retail users and institutional applications. This cost advantage has helped drive adoption across different user segments.
Network upgrades and improvements continue to roll out regularly, addressing previous technical challenges and enhancing overall performance. These developments have helped restore confidence in the platform’s long-term viability.
At the current price of $214.86, Solana trades well above its previous bear market lows but remains below its recent high of $263 set in November 2024.
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