Solana price prediction: Can SOL hit $200 as congestion is resolved

In recent weeks, Solana (SOL) has been thrust into the spotlight within the cryptocurrency industry due to persistent network congestion, which threatened its standing as a potential competitor to established entities like Ethereum (ETH).

However, recent efforts to address these issues seem to have borne fruit. According to an update shared by SolanaFloor on April 24, the congestion problems have been successfully resolved, and transactions are now confirmed in under two seconds.

? BREAKING: @solana's congestion issues have been completely resolved, with block production back to normal.Transactions confirming in under 2 seconds. pic.twitter.com/TdQVjSSRQI

— SolanaFloor | Powered by Step Finance (@SolanaFloor) April 24, 2024

The journey to resolving these issues has not been without its challenges. Particularly, initial attempts, including solutions proposed by developers like Anza and network upgrades, proved insufficient, leading to prolonged congestion.

SOL AI price prediction. Source: CoinCodex

By press time, Solana was trading at $152.27 with daily losses of over 3%. On the weekly chart, Solana is up 17%.

SOL seven-day price chart. Source: Finbold

Other SOL fundamentals

In addition to the impact of the congestion trajectory, SOL contends with other potential fundamentals likely to influence its valuation to $200. One such factor is the impending auction of a significant portion of FTX’s Solana holdings, which could potentially introduce downward pressure on SOL’s price.

At the same time, Brazil’s digital bank, Nubank, has expanded its crypto offerings to include Solana, enabling users to deposit and withdraw the token directly. This development signifies the growing institutional adoption of Solana, potentially bolstering bullish sentiment.

As things stand, the $200 price target for SOL is within reach, contingent upon various factors such as the network’s ability to maintain efficiency and scalability, market sentiment, and broader macroeconomic trends. Additionally, it will depend on the network’s capacity to sustain momentum regarding meme coins on the platform. 

Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.