The price of Solana (SOL) has historically fluctuated between $0.5052 (May 11, 2020) and $260.06 (Nov 06, 2021). Solana is a high-performance blockchain platform for decentralized applications and crypto-native solutions, offering fast transaction speeds and low fees. Solana’s price should develop in a positive direction in 2024-2025.
Solana (SOL) Price: The Historical Development
The price of Solana (SOL) has historically fluctuated between $0.5052 (May 11, 2020) and $260.06 (Nov 06, 2021). Solana’s price history starts in April 2020. This information is based on the data from Coinmarketcap.
Solana’s SOL token has only been on the market since spring 2020. Hence, compared to many other cryptocurrencies, there is little historical data available. However, Solana is over six years old as a project, as its white paper was published at the end of 2017.
After its release in 2020, Solana’s price rose to just under five dollars. In general, the Solana price remained below two dollars throughout 2020. There were no major moves in the SOL price in one direction or the other.
The 2021 crypto bull market gave Solana an unprecedented boost. In January 2021, 80% of the previously locked SOL tokens were released. This hurt Solana, and the Solana price remained below five dollars in the opening months of 2021. However, by May, its price had already multiplied.
At the end of May, Solana reached a record price of 55 dollars, a more than 10x move since January.
The graph below shows Solana’s price throughout its history.
Solana became one of the most popular cryptos of the 2021 bull market. At the end of 2021, its price rose to as much as $260! This means an increase of well over 100x during the calendar year 2021! Many investors made huge profits with SOL. At the same time, Solana rose to the attention of all crypto investors.
2022 was a weak year for all cryptocurrencies, but especially for Solana. At the end of 2021, Solana’s price collapsed by more than 30 percent and fell to around $178. Solana plunged 55 percent more during the spring and fell below $80 in March 2022.
Solana’s price continued to collapse during the spring and summer in the wake of the rest of the market. The price seemed to level off at around $30 in the summer of 2022. The collapse of the FTX exchange caused a new drop in November 2022. Solana crashed to less than $10 at the end of 2022!
In 2022, Solana’s price collapsed by more than 96 percent from its 2021 peak, and many investors believed the project was dead.
However, Solana returned to life at the beginning of 2023 and doubled its price in January. The SOL price stabilized in the $20-$30 range until the Solana started a wild rise in October 2023.
In December 2023, Solana’s price broke above 120 dollars. This means that Solana’s price increased more than ten times in 2023! At the same time, SOL became the fourth largest cryptocurrency on the market at its best.
Read our Solana Beginner’s Guide if you want more information about Solana.
What is Solana?
Solana is a high-performance blockchain platform for decentralized applications and crypto-native solutions. It offers fast transaction speeds and low fees.
Anatoly Yakovenko launched Solana in 2017. The company’s team comprises many top talents who have influenced the backgrounds of Google, Microsoft, and Apple. Before Solana, Yakovenko worked on decentralized systems.
Solana’s most significant difference from Ethereum is its Proof of History technology. Combined with the PoS consensus algorithm, this creates a scalable blockchain that offers users fast, secure, and affordable transactions. A single transaction costs only a fraction of a dollar on average. This is a big trump card compared to Ethereum’s high transaction fees.
As a whole, Solana combines innovations and the best aspects of existing cryptocurrency projects. This makes Solana a competitive and modern smart contract platform that offers a viable challenge to older projects.
Hundreds of projects, such as lending services, decentralized exchanges (DEXes), and NFT services, run on the Solana platform, and new projects are published regularly.
The SOL token is used for transaction fees on the Solana network. These fees are burned, i.e., removed from the supply. By default, this may have a positive effect on the price of the token in the future. Staking also removes tokens from circulation.
The SOL token’s annual inflation rate is currently eight percent, but this is decreasing every year. Soon, it will reach 1.5 percent.
Solana is a very interesting option for investors. As decentralized applications become more common, there will certainly be enough demand for a modern smart contract platform in the future. The NFT boom of 2021 has also increased Solana’s popularity.
If you believe in Solana’s price increase in the future as well and want to invest in SOL tokens, check out this guide: How to Buy Solana.
The price of Solana in 2024-2025
Solana’s price should develop in a positive direction in 2024-2025. The factors that drive the Solana price drive its competitor’s (Ethereum, Cardano, etc.) prices. The most important factors are:
- Popularity of the Solana ecosystem
- General market development
- Interest from institutional investors
Since Solana is a smart contract platform, its popularity depends, above all, on the popularity of Solana among app developers. The more apps are built on the Solana platform, the more SOL tokens are needed. This creates demands for the SOL token and pushes the price higher.
Solana cannot escape the general market development. In the big picture, all cryptocurrencies are going in the same direction, which has been seen well in recent years. The price of Solana will not rise significantly if the entire crypto market is not in an upward trend at the same time.
The interest from institutional investors also has a big impact. This has been one of Solana’s price drivers in 2023. If Solana also got its spot ETF approved in the United States, it would have a big impact.
In addition to the above-mentioned issues, technological development affects Solana’s price. The Firedancer client, released in 2024, will significantly improve Solana’s transaction capacity and probably increase prices.
The years 2024 and 2025 look positive from Solana’s price development perspective!