It’s time to talk about Solana. Solana’s had an explosive 2021 so far, and it’s amazing to think that the sol token started the year at only $1.60 and since then has increased to around $144, which is now a huge 9,000 percent increase.
I make all kinds of articles but I enjoy a good old price prediction from time to time. Of course, no one knows ultimately where the price will land, but from time to time, it’s good to look at past performance the fundamentals and speculate on how high prices can go.
Next week, I will be doing a deep dive into Solana, and we’ll look at the technology the tokenomics, but this article is just to see how high the soul token can go over the next six months.
So in this article, we’ll be looking at the methodology used for this price prediction. My sole price prediction for the next six months. The price trap and why the actual price of an asset is mostly not important. And then, we’ll finish with my thoughts on Solana and where I think it fits in a crypto portfolio.
So there are many different ways on how to predict a price. This could be on its future potential, its current trajectory, or even its network effects. And I’ll be basing this price prediction on the stock-to-flow model as it’s been the best model so far for predicting prices in the crypto market. So how high can Solana go? Ready for some speculation? Let’s do this.
Solana Price Predictions
So this is the stock-to-flow model made famous by the plan B. And it’s been one of the best ways to predict crypto prices since inception, so this is, in fact, Bitcoin’s price, but it’s a great proxy for the crypto market. As when Bitcoin rallies, the whole market rallies when Bitcoin crashes the whole market crashes, and this is, in fact, the same picture of the crypto market. And it’s a log chart, so it goes up in multiples of 10, and the blue line going through the middle is the average. And what you’ll notice is that because of human nature and its fear and greed that drive the markets is that it’s constantly going from value to undervalued to overvalued to undervalued as we move things way above the average in moments of greed. We crash it below the average in moments of fear. So what is stock to flow predicting? Well, in 2021, we’ve seen this big run. We’ve all gone through this most recent crash of sixty percent, and stock to flow is saying that Bitcoin will be getting to around a hundred thousand dollars by the end of this year. So this indicates that we’re going to see another big bull run coming. So based on today’s price, Bitcoin will be doing a 2x from this point.
Now because Solana is a smaller cap altcoin, it will likely outperform Bitcoin still moving forward. So I would say it’s reasonable to assume it could still be 3 to five x from here. And based on today’s price, this would give a price range of 420 to 700 dollars.
So based on a best-case scenario over the next six months, this would be my price prediction. And we also need to bear in mind and just remember the sole token has already increased 9 000 percent so far this year.
So stock to flow predicts that Bitcoin will be hitting a hundred thousand dollars by the end of the year, which indicates a big bull run is coming. With Solana being a smaller cap altcoin, it also means it’s likely it won’t just match Bitcoin’s performance but also outperform in multiples. So if Bitcoin could 2x from here, I think it’s reasonable to assume that the sole token could be 3 to 5x from here. And this would give a price range of 420 to 700, with the middle being 560 dollars. Now you may have seen some other Solana price prediction articles s where people are saying it could be 50x 100x even 150x from here.
So let me show you why these valuations are just silly, as the asset’s actual price is largely irrelevant. When it comes to the valuation of an asset, it’s mostly about one metric. Take a look. Read More…
Categories: SOLANA ECOSYSTEM