On Tuesday, the well-known crypto analyst Dennis Liu announced that his 2023 forecast for Solana (SOL) was incorrect. The analyst raised his price target for Solana to $480 by the end of 2025, noting that in an ideal scenario, it could even reach $800.
This forecast is based on several key metrics, particularly the supply and market capitalization of Solana.
Another important factor is the total market capitalization of the cryptocurrency market. The analyst predicts that Bitcoin could reach a price of $250,000 by the end of 2025, resulting in a market capitalization of approximately $5 trillion.
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Solana’s market dominance has increased from 0.75% to 3% over the past year. If this market share remains constant, Solana’s market capitalization would rise to $300 billion, corresponding to a price of $479 per token. Should the dominance increase to 5%, the price could climb to $800.
Liu initially assumed a price range of $240 to $250 for Solana but revised this in light of current developments.
Solana’s increased adoption is mainly based on two points: the Solana Mobile Initiative and Solana Pay. Solana Mobile, active for about two years, offers a mobile-first app store for decentralized applications. This makes it easier for new users to access and use cryptocurrencies, leading many users to prefer the Phantom Wallet, as reported by Coinpedia.
Solana Pay, a micropayment solution, supports SOL tokens as well as stablecoins like USDC and USDT. It has been an integral part of Shopify (NYSE:SHOP) for over a year.
