- Solana has bounced back from the early August crypto slump.
- Its recovery is greater than Bitcoin and Ether.
- Four experts share what will drive Solana's price next.
Solana has risen 35% since the crypto flash crash of August 5 that sent token prices tumbling across the market.
Its rebound is larger than the recoveries posted by market leaders Bitcoin and Ether, at 23% and 25% respectively within the same period.
Solana is up 45% since the start of the year — a higher increase than both Bitcoin and Ethereum.
However, unlike Bitcoin, it hasn’t reached its previous peak price of $260, attained three years ago.
Still, market observers say the industry darling’s price is primed for an end-of-year rally.
Here’s what four experts say will push Solana towards a new all-time high price.
BitMEX’s Arthur Hayes
BitMEX co-founder Arthur Hayes is bullish about Solana, at least within the context of a possible altseason ― what the crypto industry calls a spike in the price of crypto tokens besides Bitcoin.
Hayes predicted Solana could climb above $250, bringing its price just $10 shy of its previous peak, according to a Tuesday blog post.
There’s a catch. Solana’s price will only surge if Bitcoin and Ether break above $70,000 and $4,000 respectively.
That, however, will likely happen when US Treasury Secretary Janet Yellen unleashes a wave of liquidity, Hayes argued.
When the top cryptocurrencies soar, so will Solana’s price.
Placeholder’s Chris Burniske
Chris Burniske, co-founder of New York-based crypto venture firm Placeholder, is even more bullish on Solana and has predicted it could reach $1,000.
Burniske called his eye-catching forecast a conservative price target, in a recent X post.
He ran an X poll in July asking his followers to select their biggest crypto holdings among Bitcoin, Ether, and Solana. More than a third of the close to 22,000 participants selected Solana.
The investor interpreted the result as indicating Solana’s popularity among crypto investors as far as large-cap cryptos are concerned.
Large-cap cryptos refer to market majors such as Bitcoin, Ether, Solana, and BNB whose valuations run into hundreds of billions of dollars.
Unizen’s Ajay Dhingra
While Bitcoin and Ether captured institutional interest this year with their respective exchange-traded fund launches, Solana has also caught the eye of big-money players.
Ajay Dhingra, head of research at DeFi aggregator platform Unizen, has pointed to strong institutional interest as a reason for Solana’s price performance this year.
Dhingra previously told DL News that Hamilton Lane’s private credit fund and VanEck’s filling to launch a Solana ETF exemplify Solana’s appeal among institutional investors.
Keyrock’s Athanasios Soutos
Athanasios Soutos, DeFi ecosystem lead at crypto market maker Keyrock, echoed Dhingra’s sentiment but focused on retail investors.
Soutos told DL News that Solana’s status as the major network for memecoin speculation is indicative of retail hype.
Soutos said if the trend continues and a new upgrade goes smoothly, Solana could grow to reach Ether’s current market value of $400 billion.
Solana’s spot price would be $853 based on Souto’s prediction, assuming its token supply remains at the present level.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. Got a tip? Contact him at osato@dlnews.com.
