Solana (SOL) recently faced a steep decline of over 7% in the past 24 hours, driven by a shift in market sentiment following the release of the Nonfarm Payroll (NFP) report on August 2.
Despite this decline, Solana has demonstrated robust performance in the decentralized finance (DeFi) sector. According to DeFiLlama, Solana outpaced Ethereum (ETH) in overall trading volume for July, leading daily trading on 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.
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More of Solana’s favorable context
Adding to the optimism, the U.S. Securities and Exchange Commission (SEC) recently amended its complaint against Binance, removing allegations that Solana is an unregistered security.
This legal development, along with speculation about a potential Solana exchange-traded fund (ETF), has bolstered confidence in Solana.
Solana has also seen significant growth in its stablecoin usage. Data from Allium on Visa’s stablecoin dashboard shows that USDC transaction volume on Solana has exceeded $8 trillion since last year, underscoring Solana’s growing utility and transaction efficiency.
Additionally, Solana has become a leading platform for meme coin launches due to its lower costs compared to Ethereum.
In this context, Finbold has leveraged OpenAI’s advanced artificial intelligence (AI) platform, ChatGPT-4o to offer insights into how Solana is likely to trade by August 31, considering key factors influencing Solana’s future price trajectory.
ChatGPT-4o Solana price prediction
Interestingly, the AI chatbot has been significantly bullish in its Solana price projections, offering both optimistic and conservative scenarios for the prediction.
In an optimistic scenario, Solana could rise to $145 to $155 by August 31, 2024. This optimism is driven by Solana’s outperformance in DeFi trading volumes, reduced regulatory risks from the SEC, potential institutional inflows from ETF applications, and high USDC transaction volumes.
These factors, combined with strong community and developer support, suggest a recovery and growth toward its 200-day simple moving average (SMA).
In a more conservative scenario, Solana might range between $120 to $130 by August 31, 2024. This cautious outlook considers recent market volatility, competitive pressure from Ethereum, ongoing regulatory uncertainties, and broader economic challenges.
The current price being below both the 50-day and 200-day SMAs indicates potential continued downward pressure, reflecting cautious investor sentiment.
SOL price analysis
At press time, Solana was trading at $135.52, with losses of over 6.35% in the last 24 hours. On the weekly chart, SOL is down over 27%.
Overall, Solana’s price trajectory by August 31, 2024, will be influenced by its strong DeFi performance, regulatory developments, and broader market conditions. The optimistic scenario suggests a potential recovery and growth, while the conservative outlook highlights the risks of continued market fears and economic uncertainties.
Investors should closely monitor these factors and market indicators to make informed decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
