Solana ‘Bull Case’ Forecasts $6,636 Price Target By 2030, Crypto Firm Says
Solana ‘Bull Case’ Forecasts $6,636 Price Target By 2030, Crypto Firm Says A recent report by crypto index fund management firm Bitwise outlines varying price projections for Solana (SOL) based on its adoption and scalability improvements. According to the report, the ‘bull case’ scenario could see SOL’s price soar to $6,636 by 2030. What Sets Solana Apart? Solana, currently the sixth-largest cryptocurrency by market capitalization, has experienced a volatile few years. The digital asset was heavily impacted by the FTX collapse, plummeting from its previous all-time high (ATH) of $250 in November 2021 to a low of $9 in November 2022. However, despite the bear market triggered by the FTX debacle, SOL staged an impressive recovery, achieving a new ATH of $263 in November 2024. Bitwise’s report suggests that SOL’s growth potential remains significant in the coming years. The report identifies three core pillars supporting Solana’s investment case: sustainable economics, developer attraction, and consistent execution. It highlights Solana’s remarkable outperformance compared to other major smart contract platforms in terms of price growth in 2024. Source: BitwiseDubbed the “iPhone moment for blockchain” by the report, Solana’s standout features include its ability to process 65,000 transactions per second (TPS) and its low transaction costs. This high throughput positions it as an ideal platform for building decentralized, high-volume, low-latency applications, such as decentralized exchanges (DEXs). The chart below demonstrates that Solana’s TPS rivals that of Visa and far surpasses competing smart contract platforms like BNB Chain and Ethereum. Additionally, Solana experienced a parabolic increase in daily active addresses (DAA) in 2024, surpassing the combined DAA of Bitcoin (BTC) and Ethereum (ETH), indicating growing adoption. In terms of tokenomics, the report notes that 80.7% of SOL’s total supply is currently in circulation, with the remaining 19.3% classified as non-circulating supply. While concerns about potential token inflation persist, Solana’s inflation rate decreases annually and is projected to drop to 1.85% by 2030. The SOL Bull Case The report applies Metcalfe’s Law to estimate Solana’s network value. For those unfamiliar, Metcalfe’s Law posits that a network’s utility increases proportionally to the square of its user base. The report states: For the sake of simplicity, we assume the Daily Active Addresses (DAA) to be the number of users and the market capitalization to represent the utility of the network represented in monetary terms. Accordingly, the report shares the bear case, the base case, and the bull case for Solana. The bear case for SOL foresees a cumulative annual growth rate of 35.1%, yielding a target price of $2,318 by 2030. Similarly, the base case assumes a CAGR of 47.2%, resulting in a price of $4,025 by 2030. On the contrary, the bull case for SOL projects a price target of $6,636 by 2030, propelled by a CAGR of 59.1%. The report adds that the aforementioned forecasts take into account the natural deceleration that occurs as networks mature and achieve significant scale. At press time, SOL trades at $214.86, up 8% in the past 24 hours. SOL trades at $214.86 on the daily chart | Source: SOLUSDT on TradingView.comFeatured image from Unsplash, Charts from Bitwise and TradingView.com Ash Tiwari Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand. Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance. In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects. A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution. When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights. Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries. Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all. Disclaimer: The information found on NewsBTC is for educational purposes only. 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