Solana (SOL) shares recently saw a sharp decline of more than 7% in the last 24 hours, driven by a change in market sentiment following the release of the non-farm payrolls (NFP) report on August 2.
Despite this downturn, Solana has shown solid performance in the decentralized finance (DeFi) sector. According to DeFiLlamaSolana surpassed Ethereum (ETH) in total trading volume in July, leading in daily trading volume for 17 days.
Solana’s DeFi protocols accounted for 30% of all crypto decentralized exchange (DEX) volume in July, processing $56.849 billion in transactions, compared to Ethereum’s 28.12% share and $53.867 billion.
More favorable context of Solana
Adding to the optimism is the fact that the US Securities and Exchange Commission (SEC) recently amended its complaint against Binance, dropping allegations that Solana is an unregistered security.
This legal development, along with rumors of a potential Solana exchange-traded fund (ETF), has bolstered confidence in Solana.
Solana has also seen a significant increase in stablecoin usage, according to data from Onion Visa’s stablecoin dashboard shows that USDC transaction volume on Solana has exceeded $8 trillion since last year, highlighting Solana’s growing utility and transaction efficiency.
Additionally, Solana has become the leading platform for launching meme coins due to its lower costs compared to Ethereum.
In this context, Finbold used OpenAI’s advanced artificial intelligence (AI) platform, ChatGPT-4o, to provide insights into how Solana is likely to trade by August 31, taking into account key factors influencing Solana’s future price trajectory.
ChatGPT-4o Solana Price Forecast
Interestingly, the AI chatbot was quite optimistic in its Solana price predictions, offering both optimistic and conservative forecast scenarios.
In an optimistic scenario, Solana’s price could rise to $145-$155 by August 31, 2024. This optimism is driven by Solana’s outperformance in DeFi trading volumes, mitigating regulatory risks from the SEC, potential institutional inflows from ETF filings, and high USDC transaction volumes.
These factors, coupled with strong community and developer support, suggest a recovery and rally towards the 200-day simple moving average (SMA).
A more conservative scenario would see Solana price between $120 and $130 by August 31, 2024. This cautious forecast takes into account recent market volatility, competitive pressure from Ethereum, ongoing regulatory uncertainty, and broader economic concerns.
The current price, which is below both the 50-day and 200-day simple moving averages, points to potential continued downside pressure, reflecting cautious investor sentiment.
SOL Price Analysis
At press time, Solana was trading at $135.52, down over 6.35% in the last 24 hours. On a weekly chart, SOL is down over 27%.
Overall, Solana’s price trajectory by August 31, 2024 will depend on its strong DeFi performance, regulatory changes, and broader market conditions. The optimistic scenario suggests a potential recovery and growth, while the conservative outlook highlights the risks of ongoing market fears and economic uncertainty.
Investors should closely monitor these factors and market indicators to make informed decisions.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
