Investing

Prediction: Solana's About to Surge Right Past a $100 Billion Market Cap Toward a $250 Billion Market Cap Next Year

Chris MacDonald

Published: November 21, 2024 12:45 pm

In October, Solana’s (CRYPTO:SOL) price surged 11.2%, becoming the top-performing asset among the top 20 crypto projects. This trend has more than continued into November, with the re-election of Donald Trump to the role of U.S. president sending most cryptocurrencies, including Solana, on a tear. 

Now approaching the $140 per token level, Solana is within around 10% of making a new all-time high. And given the incredible momentum around this token, there’s reason to believe a new high will be made in short order.

We’ll have to see exactly when this takes place, and I know I’ll be among the investors watching to see just how high this token can fly over the coming year. But with clear tailwinds supporting what appears to be an insatiable demand for risk in this sector, the project’s current market capitalization of around $115 billion could certainly surge much, much higher on continued buying activity.

Here’s what it would take to see this project garner a $250 billion valuation, and why I think it’s entirely possible such a market cap could be seen next year.

Key Points About This Article:

• Solana is among the highest-growth tokens in the crypto sector, and has continued to see strong buying activity following the re-election of Donald Trump.
• Here’s what could drive this token to a potential market capitalization of $250 billion in 2025.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Solana: The “Ethereum Killer?”

In 2024, Solana significantly narrowed its gap with Ethereum, with key metrics showing increased market share. A Syncracy Capital report revealed Solana’s economic value and total application revenue exceeded Ethereum’s by over 100% in October, reflecting substantial growth from just 1% a year prior.

Solana’s economic surge in October was driven by meme coin mania, with coins like Goatseus Maximus reaching a $400 million market cap in a week. Other notable gainers included SPX6900, Apu Apustaja, and FWOG. Increased interest boosted network volumes, fees, and total value locked (TVL), which hit a two-year high of 42 million SOL, up 13% month-over-month, while Ethereum’s TVL remained flat.

Solana’s meme coin activity continues to serve as a stress test for its infrastructure, similar to Ethereum’s 2020 DeFi boom. Despite past outages, including a five-hour disruption in February 2024, Solana continues to attract decentralized infrastructure (DePIN) protocols. Impressively, this network currently hosts nine unicorns, including Helium, Render, IoNET, and Grass, compared to Ethereum’s 18.

On-Chain Metrics Remain Strong

Solana’s recent bullish momentum stemmed from rising investor confidence and surging onchain activity. Weekly Solana-based decentralized exchange volumes hit a record $26.1 billion by November 11, representing a 43% increase. This number also impressively surpassed Ethereum’s $13 billion in activity (representing a 37% market share). Moreover, Solana’s total value locked (TVL) surged to $7.9 billion by Nov. 13, up 460% year-to-date and the highest since December 2021. Decentralized applications such as Jito, Raydium, and Marinade drove this growth, reflecting increased user engagement beyond meme coins and hinting at potential Solana price gains.

Leading Solana memecoin Dogwifhat surged 42% in 24 hours, with Bonk, Peanut the Squirrel, and Popcat rising 20%, 42%, and 32%, respectively, per CoinGecko. Dune Analytics highlighted Solana’s Nov. 14 price growth followed by daily transactions increasing from 24,140 to 36,053 between Nov. 9-13.

Solana Looks Like a Buy Here

Solana, often dubbed an “Ethereum killer,” has begun gaining market share in key areas like DeFi and is certainly challenging Ethereum on a number of key metrics. With this network surpassing Ethereum on key focal areas for investors such as monthly trading volume on decentralized exchanges, there’s reason why many investors are increasingly focusing on this network as the place innovation and growth will take place, at least on the blockchain.

Personally, Solana is one of the crypto projects I remain most bullish on at this point in the cycle. With other tokens making new all-time highs, I think it’s only a matter of time that we’ll see Solana break through to a new high, and continue even higher. Just how high – that’s the key question.