On Tuesday (September 7), as Solana’s $SOL token continued its fast and furious climb up the market cap table, even the most bullish analysts were forced to increase their price targets, with one explaining how the $SOL price could reach $900.
$SOL is the native token of the Solana blockchain. Solana is “an open source project implementing a new, high-performance, permissionless blockchain” that is maintained by the Geneva-based Solana Foundation.
$SOL’s move to sixth place comes just four days after it flipped Dogecoin ($DOGE) to become the seventh most valuable cryptoasset by market cap. This time, the victim was $XRP, which itself has been doing great in the past couple of days.
Crypto analyst “Crypto Godfather” told his over 74K Twitter followers that the $SOL price had officially gone parabolic.
According to data by TradingView, on crypto exchange FTX, the $SOL price set the current intraday high of $194.56 — which is also the new all-time high — at 06:38 UTC on September 7. At the time of writing (07:50 UTC on September 7), SOL-USD is trading around $188.20, which means that it is up 28.68% in the past 24-hour period.
Popular crypto analyst “Bluntz” told his over 162K Twitter followers that if “Solana Summer” continues and $SOL manages to enjoy the kind of rally that Binance Coin ($BNB) enjoyed earlier this year, then he could see $SOL going as high as $900.
Although this might sound like a crazy price for $SOL, based on $SOL’s current price, it means that the $SOL price needs to rise to 4.8X of what it is today, which sounds like a tough challenge.
However, it is worth bearing in mind that Solana is the fastest L1 blockchain in the world (with a speed estimated to be between 50,000 and 65,000 transactions per second), it is starting to get serious attention from institutional investors, it has the full support of FTX and Alameda Research CEO wunderkind Sam Bankman-Fried (aka “SBF”), and it has a thriving ecosystem with the likes of red-hot DeFi projects such as Raydium ($RAY) and Saber ($SBR).
$ETH currently has a market cap of around $450 billion while $SOL has a market cap of around $54.2 billion, i.e. $ETH has a market cap that is roughly 8.3X of $SOL’s market cap. So, if in the next couple of years $SOL ‘s price gets to 8.3X of today’s price, that would take it to around $1560. To get to $1000, $SOL “only” needs to 5.3X from here. It is worth mentioning at this point that $SOL was trading as low as $1.51 at the start of 2021, which means that $SOL’s valuation has increased to 125X of what it was back then; in other words’s Solana’s return on investment (vs USD) in the year-to-date (YTD) period is an insane 12,363%.
By the way, talking of SBF’s crypto exchange FTX, Mohit Sorout, Founding Partner at Bitazu Capital, said that the $FTT token had entered price discovery zone.
Going back to pseudonymous crypto analyst “Bluntz”, he also mentioned that invetsors and traders should be looking for micro-cap gems among the cryptoassets that are part of the Solana ecosystem.
One of the crypto analysts forced to look for a new price target for $SOL was “The Crypto Dog”, who predicted back in May that $SOL could reach $200 before the end of the year. Although that was a pretty good prediction, with today’s intraday high being $194.56, it looks like he will need to raise his year-end price target quite a bit.
As for next year, crypto analyst Josh Rager is expecting Solana to experience “multi-hundred highs” in 2022.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.