Solana (SOL) has explosively kicked off 2023 after languishing for most of the prior Crypto bear market. The so-called "Ethereum killer" has rocketed from under $10 in late 2022 to over $116 at the time of writing – representing a massive 10X gain over the course of the calendar year.
With SOL appearing to mimic an Ethereum bull run fractal, speculation is heating up on just how high Solana could run this cycle. Here we explore Solana's background, the factors driving its parabolic 2023 price increase, theoretical future price targets based on Fibonacci extensions, and more.
A brief primer on Solana
Dubbed one of the "Ethereum killers", Solana is a highly scalable layer-1 blockchain network that can process over 50,000 transactions per second. This speed is orders of magnitude greater than older chains like Bitcoin and Ethereum. Solana prioritises scalability through a unique proof-of-history consensus combined with proof-of-stake security.
The network gained immense traction through 2021, with SOL appreciating over 15,000% from $1.66 to a high of $260. However, the 2022 downtrend wiped out as much as 97% of Solana’s value, bringing the coin to just $8 at the low. To kick off 2023, Solana appears poised to continue outpacing legacy chains and cement itself as a top 10 Cryptocurrency project.
What is fueling Solana's 2023 bull run?
After declining 97% from its all time high to tag the $9 level toward the end of 2022, Solana formed a definitive bottom. Momentum returned in early 2023 thanks to several key drivers:
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Improved macro conditions with cooling inflation
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Return of retail and institutional investor interest in Crypto assets
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Continued growth in Solana's burgeoning DeFi and NFT ecosystems
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Solana ecosystem airdrops like BONK going on sizable rallies
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Speculation from analysts that Solana may be mimicking an Ethereum bull run fractal
Buoyed by these catalysts, SOL experienced a parabolic advance, recently tagging the psychologically-key $100 level for the first time since summer 2022. With positive fundamentals and technicals aligned, Solana appears poised to continue trending higher through 2023.
How high can Solana go?
As SOL pushes back toward its former all time high, the next question becomes just how high it can run this cycle. Several analysts have highlighted fractal similarities between Solana's 2023 price action and Ethereum's 2017 bull run.
Ethereum rose over 14,000% from the bear market low of $5.80 up to $1,430. Applying the 1.414 Fibonacci extension places a similar top this cycle for SOL around $1,300. This represents over 10X additional gains from current levels near $116.
With accelerating on-chain activity, user growth, and network development, Solana appears well-positioned to continue appreciating exponentially in 2023 – likely vastly outpacing Bitcoin. $1,000+ remains firmly within reach if positive momentum sustains through the year ahead.
Trade Solana Futures your way – PrimeXBT benefits
Sophisticated traders aiming to capitalise on Solana's mega bull run are increasingly turning to Crypto Futures contracts for optimal flexibility and precision. And PrimeXBT stands out as the top platform purpose-built for trading Crypto derivatives like SOL Futures with its 0.01% and 0.02% maker and taker fees, and affordable 0.01% financing fees on up to 150:1 leverage.
Beyond industry-best variable leverage and ultra-low fees, PrimeXBT packs a customizable modular interface with advanced order types, charting tools, risk management, Copy Trading modules and more – everything technical traders need to maximise profits whether going long or short.
As an award-winning margin trading venue, PrimeXBT also enables trading a diversified portfolio covering not just Cryptocurrency, but also traditional markets like Commodities, Forex, Stock Indices and more - all from a single, secure account.
With SOL Futures providing up to 150:1 leverage, traders stand ready to compound even small moves in price into windfall gains. As one of the hottest major Cryptocurrencies coming off a brutal bear market bottom, Solana futures represent the ultimate instrument to play this mega bull run.
Disclaimer: Technical Analysis is provided by a third party, and for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
