If you invested $1,000 in Solana (SOL) at the beginning of January, you’d be having more than $8,000 now. That’s because SOL crypto has gained more than 8,000 percent so far in 2021. Why is Solana going up? What is Solana's 2022 price prediction?
Solana is an Ethereum-type blockchain for building and launching apps that can execute smart contracts, which underpin DeFi products. However, Solana offers a better experience than Ethereum. For example, Solana transactions are faster and cheaper.
Why is Solana (SOL) going up?
Solana has exploded and set multiple all-time highs in the past few hours. SOL price shot up above $100 for the first time on Aug. 30 and has continued to rise. It set a new all-time high above $129 in the early morning of Aug. 31.
Investors are rushing to buy SOL crypto in anticipation of positive news from Solana’s Ignition event. The Solana team has hyped the event as a big deal for the project. Little is known about what will transpire at the event. But some speculate that the event could be about an SOL token burn. A token burn increases a crypto’s scarcity, which should theoretically make it more valuable.
Other people think that the event will see the launch of new smart contract features that could make the Solana platform even more attractive for building DeFi products and NFT items. Whatever the Ignition brings, investors are betting that SOL's price will explode after the event.
However, after the sharp rise, some investors will be attempting to take profits, which could put temporary downward pressure on SOL's price.
Is Solana (SOL) a good investment?
You might be interested in SOL's price prediction because you want to know if the crypto is a good investment. If you missed an opportunity to invest early in Ethereum, SOL might be your second chance. Solana is shaping to be the next Ethereum if not better.
Osprey and Grayscale are seeking to launch Solana trust funds for elite investors. If these efforts are successful, the trust will expose SOL to more investors, increase the demand for the crypto, and in turn drive up its value.
Solana 2022 price prediction
Solana has emerged as one of the best crypto projects to play the DeFi and NFT boom. With SOL's price hitting multiple peaks in 2021, investors want to know how high it could go in 2022.
There are a number of catalysts that could keep Solana surging. If investors like what the Ignition event brings, SOL's price could rise more. If the DeFi and NFT excitement continues, SOL crypto will also continue to draw more investors. If the SEC approves the Solana trusts sought by Osprey and Grayscale, the demand for SOL crypto would spike and drive up the price. It won’t be a surprise to see Solana's price get past $300 in 2022.