Solana Investors Increase Holdings Despite Recent Price Corrections
Solana (SOL) has garnered attention recently due to its price movements. Following a Donald Trump presidential victory, the altcoin rose by 67.69% from November 5, reaching an all-time high of $263. However, this surge was followed by a gradual correction of 15.13% over the last two weeks. Despite this, market data indicates significant optimism among investors regarding the fifth-largest cryptocurrency.
Solana 'New' Investors Optimistic About Future
According to a report by blockchain analytics company Glassnode shared on December 13, long-term Solana investors who entered the market 1-2 years ago have offloaded substantial portions of their holdings. These investors, who likely purchased during the 2021 bull run, reduced their market share from 48% in June to below 5% currently, taking profits during the recent price rally.
Despite this decline in long-term holdings, Glassnode interprets these sales as transactional rather than indicative of doubt about Solana's potential. New investors who entered within the last 6-12 months have increased their market share to 24% during Solana’s price surge, reflecting confidence in the asset's long-term profitability despite current price declines.
VanEck Predicts SOL to Reach $500 in Q1 2025
Asset manager VanEck has made a bullish prediction for Solana ahead of 2025. In their latest digital assets insight, Head of Digital Assets Research Matthew Sigel and Senior Investment Analyst Patrick Bush forecast that the crypto market will maintain its bullish trend into the new year. They predict that Solana could trade at $500 during the first market peak in Q1 2025, representing a potential gain of 124.21% from its current price.
However, analysts caution that this surge may be followed by a 30% price correction for Bitcoin, with altcoins like Solana experiencing declines of approximately 60% as the market enters a consolidation phase in summer.
As of now, Solana is trading at $227, reflecting a 0.34% gain in the past day, while its trading volume has decreased by 14.28% to $4.12 billion.
