In recent weeks, Solana (SOL) has captured significant attention within the cryptocurrency realm, albeit for varying reasons. The well-known altcoin witnessed a notable surge, benefiting from a political event that unfolded with Donald Trump’s presidential victory. This resulted in Solana appreciating by an impressive 67.69% in a span of just three weeks post-November 5, reaching a fresh all-time high of $263. However, what followed this meteoric rise was a gradual correction of 15.13% over the subsequent two weeks. Despite this correction, recent investor behavior data suggests a prevailing sense of optimism surrounding the fifth-largest cryptocurrency.
Solana’s ‘New’ Investors Optimistic About a Bullish Future
On December 13, blockchain analytics firm Glassnode shared an insightful analysis of Solana investors’ activities in recent weeks. According to their report, investors who entered the Solana market 1-2 years ago have offloaded substantial portions of their holdings. The analytics team speculates that these investors likely acquired Solana during its 2021 bull run and have seized the opportunity to capitalize on profits during the November price rally, subsequently reducing their market share from 48% in June to below 5% at present.
While a decrease in long-term holdings might occasionally raise concerns about an asset’s future potential, Glassnode interprets these recent sales as purely transactional. Most investors appear to be selling prior to the anticipated next bull run, indicating their exit from the market. Interestingly, this selling pressure has been significantly absorbed by new Solana investors who entered the market within the last 6-12 months. These new investors have increased their market holdings to 24% during Solana’s recent price surge. This substantial investment at rising price levels reflects confidence among new holders in Solana’s long-term profitability, despite the current dip in its price.
VanEck’s Bold Prediction: Solana to Hit $500 by Q1 2025
Adding to the buzz around Solana, renowned asset management firm VanEck has presented a bullish forecast for Solana leading up to 2025. In their latest insights on digital assets, Matthew Sigel, Head of Digital Assets Research, alongside Senior Investment Analyst Patrick Bush, has jointly predicted that the overarching crypto market will maintain its bullish momentum as it transitions into the new year.
Their analysis suggests that digital assets will reach their initial market peak in Q1 2025, with Bitcoin projected to achieve a price of $180,000. During this anticipated market rally, Solana is expected to trade at $500, which equates to a potential gain of 124.21% from its current price. However, VanEck analysts caution that this surge may be followed by a 30% price correction for Bitcoin, while altcoins, including Solana, could experience declines of approximately 60% as the market enters a consolidation phase during the summer.
As of the time of writing, Solana is trading at $227, reflecting a modest 0.34% increase over the past day. Nevertheless, the asset’s trading volume has decreased by 14.28%, currently valued at $4.12 billion. The evolving dynamics of Solana’s market will undoubtedly be an area of keen interest for investors and analysts alike, as they navigate the complexities of the cryptocurrency landscape.
