Solana Price Prediction – SOL Could Retest Its All-Time Highs of $259 This Week
Solana (SOL) has experienced a remarkable week, rallying by 20% over the past seven days. However, like most cryptocurrencies, it is currently undergoing a minor correction. As of 10:11 UTC today, Solana was trading at $172.62, down by 1.52%. Despite this dip, several indicators suggest Solana might be headed for another impressive week ahead.
Phantom Wallet Points To Rising Solana Adoption
One of the most vital indicators of Solana’s potential is its increasing ecosystem adoption. A clear sign of this rising adoption is the popularity of Solana’s Phantom Wallet, which now ranks third among utility wallets on the Apple Store, only behind Google and Google Chrome. This ranking highlights the growing number of users utilizing the Phantom Wallet, suggesting an increasing number of people are engaging with Solana’s blockchain.
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Phantom wallet is the 3rd TOP utilities app
I’m so bullish on crypto & Solana!! pic.twitter.com/TlujSQHdeZ
— borovik (@3orovik) May 18, 2024
Solana Now Ranked As Fastest Blockchain
Solana’s performance is more expansive than wallet adoption. It has also earned the title of the fastest blockchain, outperforming major competitors like Ethereum and Polygon. According to research by CoinGecko, Solana has demonstrated exceptional speed, with its actual daily average transactions per second (TPS) reaching a record high of 1,504 on April 6, amid the memecoin mania. This makes Solana 46 times faster than Ethereum and more than five times faster than Polygon, which has the highest TPS among Ethereum scaling solutions.
Read More: Solana overtakes Ethereum and Polygon in transaction speed
Solana Only Operating At 1.6% Of Its Max TPS
Despite achieving the highest TPS among large blockchains, Solana has only reached 1.6% of its theoretical maximum speed of 65,000 TPS. This untapped potential positions Solana as the most usable blockchain for building applications intended for everyday use.
Solana isn’t even designed for maximum throughput. It’s designed to synchronize state to as many boxes around the world as fast as physics allow. https://t.co/lTfDJuG6mp
— toly 🇺🇸| bip-420 (@aeyakovenko) May 17, 2024
The combination of high speed and low usage relative to its capacity suggests significant room for growth, making Solana a promising platform for future development.
Solana Practicality Makes It Perfect For Dapps
This technical advantage translates into real-world usability, making Solana highly attractive for decentralized application developers. As a result, more DApps are likely to choose Solana over other blockchains like Ethereum. This trend is evident as Solana has consistently outperformed Ethereum in terms of meme coin decentralized exchange (DEX) volumes for several months. This outperformance strongly indicates Solana’s growing popularity and usability.
DeFi Moving To Solana
Additionally, decentralized finance platforms are starting to embrace Solana. The speed and efficiency of Solana’s blockchain make it an appealing choice for DeFi applications, which require high transaction throughput and low fees. As more DeFi platforms migrate to or integrate with Solana, the ecosystem’s growth and adoption are expected to accelerate.
Despite the minor correction today, Solana’s impressive rally over the past week and its strong indicators of future growth make it a cryptocurrency to watch. The rising adoption and its technical advantages suggest that Solana could retest its all-time highs soon.
Source: TradingView
After more than a month in the red, Solana erased all those losses this week in a long green candle. This has marked the completion of a bullish reversal for Solana, a move that could see it continue gaining upside momentum in the coming week. If bulls sustain this momentum, Solana could rally to a high of $201.63 in the coming days. Pushing through this resistance could see Solana test the 2021 high of $259.94 in the coming days.
However, if bulls lose momentum in the coming week, Solana could enter a consolidation phase and trade between $201.63 resistance and $137.08 support. On the other hand, if bears take control in the week, the critical level to watch would be the $137.08 multi-month support. Solana could drop to $100 if this support is broken.
Solana All-Time Highs a Realistic Target In The Week
Solana is more likely to continue trending higher now that bulls have cleared off a month of losses. This puts the all-time highs squarely in focus, especially now that Solana is on an exponential adoption path. At the same time, Bitcoin has rebounded off the $60k support, which could drive the broader market higher. All these factors point to a potentially bullish week for Solana.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Kamal Masri
Kamal is an experienced financial analyst with a demonstrated history of working in the Financial Market. Skilled in Equities, Capital Markets, Portfolio Management, Risk management, and Corporate Finance. Kamal has worked at some of the leading online finance publications providing his expert knowledge on cryptocurrency. Kamal has written widely on digital assets across the stock and crypto media space and beyond, including for Coindesk, Ethereum World News and The FinTech Times.
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