Should I buy Solana right now? Here’s my price prediction.

The DeFi sector turns to Solana as an Ethereum alternative

The main purpose of the Solana SOL/USD Protocol is to facilitate decentralized application (dApp) creation, where it aims to improve the scalability through using proof-of-history (PoH) consensus alongside proof-of-stake (PoS).

Several recent developments within Solana reinforces the bullish case for buying SOL.

Recent Solana growth catalysts

On June 28, 21Shares AG, an issuer of crypto Exchange Traded Products (ETPs), announced that it would be launching the world’s first Solana (SOL) ETP on the regulated market of the Swiss stock exchange on June 30 which goes by the ticker of ASOL. This means that we can expect a heightened activity of the SOL token on June 30, which has the potential of boosting its price higher. On June 28, SOL held a value of $31.

On June 29, The Digital Assets AG company which focuses on digitalizing stocks announced that it launched its tokenized stocks on the Solana Blockchain. More on-chain activity leads to a higher circulation of SOL tokens which in turn will increase the price even further. This is evident as the price of SOL on June 29 was at $35.

On June 30, $1.44 million was raised to develop Solana Gateway and Token Launchpad. This was raised with the aid of grants from Solana as well as Eco Serum and the participation of VCs. 

Dexlab is the developer behind the Minting Lab, which is a turnkey solution for token insurance as well as management and even deployment of smart contracts.

Parataxis Capital, Genesis Block Ventures, CMS, NGC Ventures were some of the firms to invest and support this Dexlab vision of a decentralized exchange and token minting framework running on Solana.

With this development, we can definitely see an increase in the requirement of the SOL token, which will lead to heightened demand, and as more people buy it, its price can increase.

Should you buy Solana (SOL)?

On June 30, Solana (SOL) had a value of $32 which translates to roughly the midpoint between where it traded at on June 22 ($21) and its peak on June 9 ($42).

This information puts a perspective on how far the token has recently had a chance to climb, as well as how much it has fallen. 

At around $30 mark, the SOL token is a worthwhile investment due to its recent ETP launch on the regulated market of the Swiss stock exchange, as well as its boost to the development of the Solana Gateway and Token Launchpad. 

All of these developments will lead to heightened popularity, use of the SOL token, and with this demand, a heightened price which we expect to rise to the $35 mark by the end of July.

The post Should I buy Solana right now? Here’s my price prediction. appeared first on Invezz.

Publication date: 
06/30/2021 - 16:40
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.