Solana, often viewed as a direct competitor to Ethereum, has been making significant strides in the crypto market, recently surging past $32. Analysts are optimistic about Solana’s future, and asset management firm VanEck has provided ambitious price predictions.
VanEck‘s report on Solana outlines various valuation scenarios for the cryptocurrency. The predictions range from a conservative estimate of $9.81 to an ambitious forecast of $3,211.28 by 2030. In comparison, Ethereum’s target price for the same period is $11,800. This translates to a staggering potential price increase of 10,600% for Solana over the next seven years.
Solana’s Path to Accommodating Over 100 Million Users
The report also explores a scenario in which Solana becomes the first blockchain capable of accommodating applications with over 100 million users. This potential achievement highlights Solana’s scalability and its ability to handle a large user base, a crucial factor for blockchain platforms.
Screenshot of Solana price performance Source: TradingView
VanEck, a prominent financial institution, has actively participated in the cryptocurrency space. The firm has submitted Bitcoin exchange-traded fund (ETF) applications to the U.S. Securities and Exchange Commission (SEC) in recent years. This suggests that VanEck may introduce additional financial products in the crypto market, potentially including offerings related to Solana.
Solana’s Strong Performance
Solana (SOL) has demonstrated impressive growth in 2023, with its price increasing by over 200%. As a result, Solana has outperformed major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Additionally, Solana’s decentralized finance (DeFi) total value locked (TVL) has reached an impressive $378 million.
Potential for Short-Term Price Correction
Technical analysis suggests the possibility of a partial price correction for Solana. The Daily Directional Movement Index (DMI) indicates an increasing influence of sellers on the daily chart. To maintain its gains, Solana may require swift action from bulls. Failure to do so could leave Solana vulnerable, potentially leading to a drop below $30.
Traders considering short positions for SOL may explore selling against the USD, guided by technical indicators pointing towards a bearish trend, which could result in a 15% decline from the current price of $27. This potential correction aligns with a nearby support level, supported by the 21-day Exponential Moving Average (EMA).