{"id":16079,"date":"2024-08-14T11:19:35","date_gmt":"2024-08-14T08:19:35","guid":{"rendered":"https:\/\/forklog.com\/en\/solanas-path-to-190-a-more-realistic-outlook\/"},"modified":"2024-08-14T11:19:35","modified_gmt":"2024-08-14T08:19:35","slug":"solanas-path-to-190-a-more-realistic-outlook","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/solanas-path-to-190-a-more-realistic-outlook\/","title":{"rendered":"Solana&#8217;s Path to $190: A More Realistic Outlook"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>The rise of Solana to $190 appears more realistic than reaching $300-1000, due to competition with Ethereum&#8217;s L2 and the risk of diminishing hype around meme coins.<\/li>\n<li>The Firedancer update could set a new standard for blockchain scalability.<\/li>\n<\/ul>\n<\/div>\n<p>Expert forecasts for Solana&#8217;s price range from $300 to $1000, yet on-chain data suggests a more realistic scenario of returning to the July highs of $190+. This is reported by <a href=\"https:\/\/cointelegraph.com\/news\/solana-to-1k-seems-unlikely-but-network-fundamentals-forecast-190-sol\">Cointelegraph<\/a>.<\/p>\n<p>Trader and technical analyst Kaleo noted the similarity of the current SOL price pattern to ETH before its 245% rise to its <span data-descr=\"all-time high\" class=\"old_tooltip\">ATH<\/span> in 2021, suggesting a rise to $1000 by 2025.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The current <a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> chart looks incredibly similar to what <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> did in late 2020 prior to sending to new ATHs.<\/p>\n<p>If Solana manages similar growth from the previous ATH that ETH did last cycle during this bull market, $1K SOL is a reasonable target. <a href=\"https:\/\/t.co\/JYqaLtomUs\">pic.twitter.com\/JYqaLtomUs<\/a><\/p>\n<p>\u2014 K A L E O (@CryptoKaleo) <a href=\"https:\/\/twitter.com\/CryptoKaleo\/status\/1823085714856202540?ref_src=twsrc%5Etfw\">August 12, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The publication doubts this target can be reached, as the cryptocurrency&#8217;s market cap would need to reach $500 billion, placing it alongside 18 public companies.<\/p>\n<p>Journalists recalled that Ethereum maintained this level during the bull run for only 40 days.<\/p>\n<p>They consider a rise to $300 (+104% from the current level) to be a more reliable forecast.<\/p>\n<p>As drivers, the publication highlighted:<\/p>\n<ul class=\"wp-block-list\">\n<li>applications for launching a Solana ETF;<\/li>\n<li>displacing BNB from the second position in terms of <span data-descr=\"total value locked\" class=\"old_tooltip\">TVL<\/span> in the DeFi sector, competing with Ethereum in the context of <span data-descr=\"decentralized exchanges\" class=\"old_tooltip\">DEX<\/span>.<\/li>\n<\/ul>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1149.webp\" alt=\"1-1149\" class=\"wp-image-238885\"\/><figcaption class=\"wp-element-caption\">DEX trading volume structure on various blockchains. Data: <a href=\"https:\/\/defillama.com\/dexs\/chains\" title=\"\">DeFi Llama<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Growth Limitations<\/strong><\/h2>\n<p>Journalists described SOL as overvalued compared to Ethereum&#8217;s L2 tokens.<\/p>\n<p>The combined FDV of Optimism (OP), Arbitrum (ARB), Polygon (MATIC), Mantle (MNT), StarkNet (STRK), ZKsync (ZK), Immutable X (IMX), and others is $31 billion, more than 60% lower than Solana&#8217;s $85 billion, with approximately equal numbers of active addresses over seven days.<\/p>\n<p>They also noted that users have sent stablecoins equivalent to $9.69 billion to Ethereum&#8217;s L2, more than the total in Solana and BNB Chain combined.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">? Layer 2s have more Stablecoins than SOL and BSC combined! <\/p>\n<p>+150% more than Solana <br \/>+94% more than Binance Smart Chain <br \/>Using <a href=\"https:\/\/twitter.com\/DefiLlama?ref_src=twsrc%5Etfw\">@DefiLlama<\/a> data for BSC\/SOL <\/p>\n<p>More food for thought \u2013 Next post ? <a href=\"https:\/\/t.co\/cAjQRzQgQv\">pic.twitter.com\/cAjQRzQgQv<\/a><\/p>\n<p>\u2014 growthepie.xyz ?? (@growthepie_eth) <a href=\"https:\/\/twitter.com\/growthepie_eth\/status\/1823332420319363367?ref_src=twsrc%5Etfw\">August 13, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Journalists noted that reliance on SOL due to meme coins and airdrops could prove unstable in the long term.\u00a0<\/p>\n<p>They expressed confidence in the asset&#8217;s price reaching $190 due to community interest in projects like Helium, Jupiter, and PayPal USD. However, they deemed a return to this level unlikely in the near term due to competition with Ethereum&#8217;s L2.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Impact of Meme Coins<\/strong><\/h2>\n<p><a href=\"https:\/\/www.theblock.co\/post\/310760\/explosive-growth-or-speculative-surge-solanas-active-addresses-soar-as-firedancer-upgrade-looms\">The Block<\/a> also highlighted the hype around meme coins on Solana, calling it a &#8220;double-edged sword.&#8221;<\/p>\n<p>In July, the network reached 54.33 million active addresses, showing a 151% increase since the beginning of the year. The number of non-voting transactions also hit a new ATH, totaling 1.3 billion.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The quality of activity matters as much as the quantity. Do these new addresses represent long-term users or short-term speculators chasing the next meme?&#8221;<\/em> \u2014 commented the publication.<\/p>\n<\/blockquote>\n<p>According to journalists, a genuine assessment of the ecosystem&#8217;s state requires considering factors such as developer activity, the use of <span data-descr=\"decentralized applications\" class=\"old_tooltip\">dapps<\/span> beyond trading, and the sustainability of audience engagement.<\/p>\n<p>They noted the upcoming Firedancer update, which could enhance transaction processing capabilities and overall network resilience.<\/p>\n<p>The update is expected to enable the processing of millions of <span data-descr=\"transactions per second\" class=\"old_tooltip\">TPS<\/span>, further strengthening Solana&#8217;s position as a high-performance blockchain. By maintaining low fees, developers could set a new standard for scalability, The Block emphasized.<\/p>\n<p>In April, the Solana team <a href=\"https:\/\/u1f987.com\/en\/news\/solana-team-releases-update-to-address-network-congestion\">updated the software<\/a> as part of measures to combat blockchain congestion, which led to transaction delays.<\/p>\n<p>In August, developers, validators, and client teams addressed a critical network vulnerability through a coordinated update.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The rise of Solana to $190 appears more realistic than reaching $300-1000, due to competition with Ethereum&#8217;s L2 and the risk of diminishing hype around meme coins. The Firedancer update could set a new standard for blockchain scalability. Expert forecasts for Solana&#8217;s price range from $300 to $1000, yet on-chain data suggests a more realistic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16078,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1146,1093,787,569,1161,1150,1268,1159],"class_list":["post-16079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-market-forecasts","tag-defi","tag-dex","tag-etf","tag-memes","tag-news-plus","tag-on-chain-analysis","tag-solana-sol"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/16079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=16079"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/16079\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/16078"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=16079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=16079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=16079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}