Can These Factors Push SOL to $200 in 2024?

Following a tremendous rally in 2023, Solana 2024 price prediction has surfaced, with many enthusiasts speculating that the crypto asset could surpass the $200 price level this year.

SOL ranked among the top-performing crypto assets last year, having surged from a mere $30 to over $120 in three months. 

SOL 2023 Rally 

Solana’s remarkable price rally saw the asset overtake prominent cryptocurrencies, like USD Coin (USDC), XRP, and BNB to rank as the fourth-largest cryptocurrency by market capitalization. 

Shortly after surging to $124 on December 25, Solana slumped below the $120 mark almost immediately, which saw it drop to the fifth position in the global crypto ranking. At the reporting time, SOL trades for $107, down 5.8% over the past 24 hours.  

Can SOL Revisit the $200 Price Level? 

Despite the price dip, Solana enthusiasts speculate that SOL could surpass the $200 price level before the end of 2024. Recall that SOL surged to an all-time high (ATH) of $259.96 on November 6, 2021. 

Since it achieved this feat, SOL lost most of its gains in subsequent months. It even slumped below $10 a year later following the devastating collapse of the FTX crypto exchange.  

For context, the last time SOL traded around $200 was in December 2021. However, some market participants believe the crypto asset could revisit the $200 level this year. 

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Notably, SOL would need to spike 86.91% from the current price of $107 before it will hit $200. In addition, the digital asset will need to spike by 142% to revisit its previous ATH.

Potential Catalysts for SOL $200 Price Surge 

Solana enthusiasts are expecting three major factors to play a pivotal role in SOL’s rally to $200. 

Upcoming Bitcoin Halving 

The halving event slashes Bitcoin miners’ rewards in halves. According to reports, the next halving event is expected to occur in April 2024. After the upcoming event, miners receive 3.125 BTC for verifying transactions on the Bitcoin network. 

Historically, the halving is followed by a massive spike in the price of Bitcoin and other crypto assets, including SOL.

Solana investors are not expecting the upcoming halving event to be different from the previous ones. They expect SOL to surpass the $200 price level after the Bitcoin halving event. 

Massive Whale Activity 

Cryptocurrency whales have continued to show massive interest in SOL in recent times. On a daily basis, whales have been moving huge amounts of SOL from exchanges to various unknown wallets and vice versa. 

Data from Whale Alert shows that these investors have moved more than 1M SOL coins over the past 24 hours. Earlier today, an anonymous whale moved 600,502 SOL worth $65.2 million to an unknown wallet.  

Solana’s Booming DeFi Sector 

Market participants also expect the cryptocurrency’s booming decentralized finance (DeFi) sector to play a major role in pushing it beyond the $200 price level. 

The total value locked (TVL) across all Solana DeFi projects has recorded significant growth in recent weeks. Solana’s TVL, which slumped to around $1B on December 18, is currently around $1.47 billion, according to DeFiLlama data.