Despite concerns about inflation that brought the Solana rate below $200, people remain optimistic about the future of this platform. VanEck even predicts a Solana rate of $520 in 2025 despite the recent crypto crash.
Solana managed to impress at the beginning of this year after rising above $260. However, just one month later, Solana is only worth $179. In the space of a month, the current number six in the crypto market has fallen by almost 30%. The main reasons behind this decline? Solana’s inflation and the meme coin ‘hellscape‘.
Solana inflation rises
On February 12, Solana implemented an update that drastically lowered the daily burn rate of Solana. The amount of SOL burned went from 17,700 to just 1000.
This drastic drop in the burn rate also caused a drastic rise in inflation.
Solana burn rate drops by 94% – source: BlockWorks
Solana inflation has risen by a whopping 30%. Inflation is increasing because fewer Solana are being burned and the same amount of Solana are being put on the market. This inflation now appears to be having a negative effect on the Solana price.
VanEck optimistic about Solana’s future
Despite the significant decline experienced by Solana and the problems with inflation, VanEck remains positive about the near future of this project. VanEck is one of the world’s largest fund managers and manages more than $100 billion in funds.
VanEck now reports that it expects a Solana value of $520 by the end of 2025. But it doesn’t stop there, because Bitwise and Standard Chartered even predict a value of $750 by the end of 2025.
A value of $750 would mean an increase of no less than 318%. These kinds of increases are normally ambitious for projects with a market cap of around $100 billion. But recent months have shown that there is still a lot of potential in the crypto market.
Nevertheless, the question at the moment is when Solana will be able to start climbing. Its technical indicators seem to be struggling at the moment.
Solana technical indicators point to continued declines
If Solana’s technical indicators are anything to go by, there will be no increase for the time being. The RSI is at a neutral level with a value of 39, while the MACD histogram is giving a sell signal.
The recent drop in Solana’s share price has also caused the Solana share price to be worth less than all of its EMAs, both short-term and long-term. This is normally a clear signal that investors should not expect exceptional profits for the time being. This 318% increase therefore seems a long way off.
Despite the recent declines of Solana, the Solana blockchain is still widely used. And with the introduction of Solaxy, a project has now appeared on the market that makes this blockchain even better.
With Solaxy, a project has been set up that forms the first Solana Layer 2 blockchain. This blockchain solves all the known problems of the Solana blockchain. It offers users faster transactions, fewer failed transactions and more scalability solutions. It also combines the advantages of Ethereum’s liquidity and Solana’s efficiency to offer its users even more benefits.
Solaxy is powered by the native SOLX token. This token is currently available for purchase in the presale. The SOLX presale gives early investors the chance to purchase tokens at the lowest possible price. However, because the price of these tokens will continue to rise in each new phase of the presale, users will have to hurry. These tokens can also be staked to realize additional profits.
