3 Reasons Solana (SOL) Price Might Soar in 2024

Current market situation

Solana (SOL) has seen a rapid surge in price since October 2023, peaking at $126 in December of the same year. In the past month, SOL has shown remarkable growth, surging by 19.64% against the U.S. dollar. Analysts anticipate further upward momentum for SOL, with a potential parabolic recovery targeting the next resistance level at $130.

Chris Burniske, a former analyst at Ark Invest, has put forth a bullish forecast for Solana, envisioning a threefold increase from its previous peak, potentially reaching a valuation of $750. Despite the current stagnation of Solana around the $120 level, Burniske’s optimistic outlook underscores the significant potential of the network.

Bitcoin’s support

The recent bullish trend in Solana reflects a broader wave of optimism across the cryptocurrency sector. This optimism was initially sparked by Bitcoin’s rally, surpassing the $50,000 mark. 

Given Bitcoin’s influence as a market bellwether, its strength against resistance levels could drive rallies in major altcoins like Solana. In relation to this, cryptocurrency educator Koroush Khaneghah recently projected a potential price target for Solana at $140, representing a 30% increase from its current level.

Network development

Solana boasts a robust developer community, with over 2,500 active contributors, highlighting its appeal as a blockchain ecosystem. Notably, it maintains a retention rate of over 50%, reflecting sustained engagement and fostering an environment conducive to innovation.

Optimism for SOL’s future is fueled by developments like Firedancer, a validator client aiming to enhance Solana’s processing capabilities and support parallel processing. This, coupled with airdrops and Solana’s cost-effective and user-friendly network, has bolstered confidence among traders, with SOL inching closer to its yearly highs and potentially forming a new all-time high in 2024.

In a recent development, Solana announced its integration with Filecoin (FIL), a decentralized network focusing on data storage and processing. This partnership aims to enhance Solana’s block history accessibility and usability for various Web3 infrastructure providers and network actors, leading to advancements in data redundancy, scalability and security without compromising decentralization.

Recent NFT developments 

In January 2024, Solana NFTs achieved a significant milestone by surpassing Ethereum in monthly sales volume for the first time ever. Solana NFT sales surged to approximately $366.5 million, exceeding Ethereum’s $353.2 million in December 2023.

The platform has witnessed a notable uptick in user engagement, with a rise in both sellers and buyers. Sales volume nearly reached a record-breaking level, closely matching its peak during the bull run in October 2021.

Magic Eden, a leading NFT marketplace in the crypto sector, has revealed plans to launch a reward program on the Solana network. The introduction of this program is expected to attract a significant number of users to the Magic Eden marketplace, subsequently driving increased activity on the Solana network. 

In 2024, Solana is poised for substantial advancements. New token expansions will streamline creation processes and boost compatibility, appealing to developers. Firedancer, a high-performance validator client, is expected to optimize and scale Solana, potentially exceeding 1 million transactions per second. With these innovations and its existing features, Solana emerges as a strong contender in the blockchain arena, primed for continued growth and innovation.

About the author

Dan Burgin