Solana (SOL) price – EUR & USD

The price of Solana (SOL) has historically fluctuated between $0.5052 (May 11, 2020) and $260.06 (Nov 06, 2021). Solana is one of the largest smart contract platforms on the market. The price of the SOL token is based on the popularity of the Solana platform. Solana’s price development looks promising in the coming years.

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 the spring of 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.

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.

The graph below shows Solana’s price throughout its history.

solana price
The year 2022 was bad for all cryptocurrencies, but especially for Solana. At the end of 2021, Solana’s price collapsed by more than 30 percent from its peak. In the spring of 2022, it plunged 55 percent more and fell below $80 in March 2022.

Solana’s price continued to collapse with the rest of the market. The price seemed to level off at around $30 in the summer of 2022. However, the collapse of the FTX exchange caused a new crash in November 2022. Solana crashed below $10 at the end of 2022! Solana’s price eventually collapsed by more than 96 percent from its 2021 peak. Many investors believed the project was dead.

Solana came to life at the beginning of 2023 and doubled its price already in January. The SOL price stabilized at 20-30 dollars for a long time until the price began a significant move in October 2023. In December 2023, Solana’s price even broke the $120 mark. This meant that Solana’s price increased more than 10 times in 2023! At the same time, SOL became the fourth largest cryptocurrency on the market at its best.

The year 2024 has been positive for Solana. The Solana price moved mostly sideways in January-February but rose steadily in March. This trend peaked on the first day of April at $209.

The wild rise was followed by a period of decline. Solana’s price fell in April-May 2024, along with the rest of the market. At its lowest point, Solana traded at around $125, a 40% drop from the 1st of April. After this, the price recovered to over $170 at the beginning of June. Thus, Solana’s price has risen more than 70 percent in 2024.

What is Solana?

Solana is one of the largest smart contract platforms on the market. It is an operating system for smart contracts and decentralized applications (dapp). Solana is currently Ethereum’s biggest challenger. Its other competitors include Ethereum Layer 2s, BNB Chain, Cardano, and Tron.

Solana’s native token is SOL. It is used on the Solana platform to pay transaction fees and staking.

Solana was founded in 2017 by Anatoly Yakovenko, who is originally from Ukraine. The project’s name comes from the Solana beach in California, popular with surfers. Solana means sunshine in Spanish.

Solana’s strength is its Proof of History technology, developed by Yakovenko. It can theoretically process up to 60,000 transactions per second and has gained a reputation as the fastest smart contract platform on the market.

Below is a picture from Solana’s website (solana.com), where you can find more information about the project.

solana

The downside of the scalability has been numerous technical problems, which Solana suffered from, especially in 2021-2022. Now, these bugs have been fixed. Solana’s next step is Firedancer, which will be released at the end of 2024. It is a completely new Solana client, theoretically enabling the processing of up to a million transactions per second.

The last few years have been quite a rollercoaster for Solana. In 2022, its price collapsed more than 95% from the ATH, and many considered the project dead. However, Solana has come back to life and, in 2024, became the number one platform for meme investors.

Solana broke the historical record in May 2024, when 455,000 tokens were created on its blockchain in one month. This demonstrates the platform’s popularity. The Solana project has also expanded to mobile devices and released a smartphone.

Read Solana in this article: What is Solana (SOL)?

Where does the SOL token get its value from?

The price of the SOL token is based on the popularity of the Solana platform. Many different things, such as social media hype, regulation, and technical updates influence popularity. Let’s go through these next.

Solana’s native token is SOL. Its main function is to act as a currency to pay transactions in the Solana ecosystem. The more users there are on the Solana platform, the more demand there is for the SOL token and the higher the Solana price. For example, you can monitor this demand through transaction volume or the number of new addresses.

Solana is also a Proof of Stake-based platform, meaning its blockchain is maintained by a group of validators who stake SOL tokens. The more stakers, the more SOL tokens are locked out of the round. Thanks to this, the price of Solana increases when the supply decreases.

Regulation is also a big factor. If Solana gets a green light from, for example, the SEC in the United States, it would certainly raise Solana’s price.

The fourth big factor is technical updates. Solana must provide a functional and scalable environment that attracts developers to create new applications. This, in turn, attracts new users and creates demand for the SOL token.

Solana’s price is influenced by these four factors and general social media hype. It is also linked to the rest of the market, which means that the SOL price will not rocket if the rest of the crypto market is not in a positive trend.

How will the price of Solana develop in the future?

Solana’s price development looks promising in the coming years. Next, let’s look at which factors drive Solana’s price higher.

The most important factor for Solana’s positive forecast is the purification of its status and reputation during 2023–2024. Solana’s reputation hit rock bottom in 2022. The project suffered from technical problems, its price collapsed by more than 95 percent, and it lost the support of FTX.

Solana came back into the limelight last year. The bugs have been fixed, and institutional investors have begun to support Solana. This money has raised Solana’s price significantly.

Memes are also a significant factor, with their influence on the crypto sector continually growing. Solana is the most popular meme platform in the entire crypto industry. Tens of thousands of new tokens are created monthly, creating demand for the SOL token and, thus, positively affecting its price.

memecoins

Related to this is Solana’s Phantom wallet, which has become very popular. It provides beginners with easy and quick access to the Solana ecosystem.

Solana is also becoming more technically advanced. The Firedancer update in 2024 will solidify Solana’s position even more. It is already a competitive platform that processes more daily transactions than its biggest competitors combined.

Therefore, Solana’s forecast is quite positive. We expect Solana’s price to break the ATH reading during 2024-2025 and even hundreds of dollars higher.

If you want to invest in Solana, check out this beginner’s guide: How to buy Solana? In the article, you will get detailed instructions for buying SOL tokens easily and safely. If you invest in Solana for the long term, you should also consider a steak. It allows you to earn more than seven percent annual interest on your investments.