Following the example of bitcoin and other altcoins like ethereum, Solana is slowly climbing higher, clawing its way back after heavy losses in June. Although buyers have yet to reclaim the $155 support level, the expansion over the past few days has seen the coin gain 25% after plummeting in early July.
Is SOL preparing for $1,000?
These encouraging gains over the past few days have traders forecasting significant gains in the coming days and weeks. As for x, one analyst x.com/CryptoFaibik/status/1812713073985134893″ target=”_blank”>saying The coin would easily be worth more than 6 times its spot value, rising to $1,000 in the next bull cycle.
<img class="size-full wp-image-629843" src="https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg" alt="SOL prices will rise in the next cycle | Source: @CryptoFaibik via x” srcset=”https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=2531 2531w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=460 460w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=860 860w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/07/Solana-Dominates-Ethereum-SOL-Analyst-Now-Targets-1000.jpg?w=1140 1140w” />
As things stand, it is evident that SOL is already in an uptrend. At the deepest point of the downtrend in 2022, the collapse of FTX and Alameda Research caused SOL to fall to $8. The coin has recovered in recent months, especially starting in the second half of 2023, and reached $210 in March 2023.
However, the cooling of the past three months has not negated the main uptrend. If anything, buyers are still in control, and even with recent losses, SOL is still roughly 8x higher than it was in October 2023.
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Several factors could push Solana higher, even above the $220 recorded in the last bull cycle of 2021. A large part of this will be driven by increased adoption and Solana’s rise as the third most valuable smart contract platform, only following ethereum and BNB Chain.
As the home of meme coins, Solana is becoming a platform of choice for developers and traders, with most highlighting its high scalability and low transaction fees.
At the same time, because there is no need to use off-chain solutions, some argue that Solana could be more secure than ethereum layer 2 platforms like Base.
Solana Dominates ethereum and Spot ETF Hopes
The rise of meme coins has driven Solana’s on-chain activity higher, judging by rising DEX volumes.
DeFiLlama Data sample Solana dominates ethereum in daily and monthly DEX volume. On average, these DEXs process over $13 billion each week.
If meme coin prices recover, surpassing the $65 billion peak recorded in recent months, according to CoinMarketCap dataSolana is likely to stretch ethereum and consolidate its position. Like BOME, WIF, BONK and other Solana meme coins, it is among the most active and valuable.
Although the US Securities and Exchange Commission (SEC) previously stated that SOL is an unregistered security, some changes could question this preliminary view.
Recently, VanEck and 21Shares applied to the regulator for approval of Solana spot exchange-traded funds (ETFs). The application is still in the early stages, but a final decision will be made before the end of the first quarter of 2025.
