Summary:
Solana (SOL) jumped over 50% in mid-January 2025.
Solana is seen as a premier blockchain challenger to Ethereum (ETH).
New spot Solana ETFs could attract up to $6 billion in new investments.
Solana's unique mobile crypto strategy aims to onboard new users.
The surge in meme coins boosts demand for Solana, evidenced by a 12% spike in price.
It's less than a month into the new year, and already a number of top altcoins are starting to pull away from market benchmark Bitcoin. While Bitcoin is up 15% for the year, other cryptocurrencies are up 30%, 40%, and even 50%.
The Cryptocurrency on My Radar: Solana
The one cryptocurrency on my radar right now is Solana (SOL), which jumped more than 50% between Jan. 12 and Jan. 17. There are several catalysts for Solana in 2025, and all of them are setting this cryptocurrency up for rapid growth over the coming years.
The Next Ethereum?
First and most importantly, Solana has emerged as the premier blockchain challenger to Ethereum (ETH). Solana is a smart contract blockchain platform, meaning it can do anything Ethereum can do. It also boasts a thriving ecosystem in areas ranging from decentralized finance (DeFi) to blockchain gaming.
Today's Change: (6.17%) $15.74
Current Price: $253.79
But here's the thing: Solana is faster, cheaper, and easier to use than Ethereum. Cathie Wood of Ark Invest emphasized the potential for Solana to take market share away from Ethereum, as faster speeds and lower costs are key to winning over new customers.
New Spot ETFs
There's another big factor in Solana's favor: the high probability that new spot Solana exchange-traded funds (ETFs) will be coming in 2025. Think back to the arrival of the spot Bitcoin ETFs last January, which resulted in tens of billions of dollars flowing into Bitcoin, pushing up its price. J.P. Morgan recently suggested that as much as $6 billion of new investor money could flow into the Solana ETFs.
Mobile Crypto Strategy
Solana also has something that no other top Layer-1 blockchain network has: a mobile crypto strategy. Solana launched the crypto-friendly Saga smartphone in 2023, and is following that up with a lower-cost Seeker smartphone in 2025. This strategy aims to onboard new users by making it easier to use the Solana blockchain.
Meme Coins
Solana has emerged as the blockchain of choice for launching, buying, and selling meme coins. Thousands of new meme coins are being created daily, and Solana is arguably the easiest and most efficient platform for this. The price of Solana spiked by 12% following the launch of a meme coin by President Donald Trump, demonstrating the connection between meme coin trading and overall demand for Solana.
How High Can Solana Go?
If you buy into the idea that Solana is the next Ethereum, you can compare market caps. Currently, Ethereum has a market cap of $400 billion, while Solana stands at $125 billion. If Solana closes the gap with Ethereum, we're talking about a potential gain of $275 billion in market cap, suggesting a target price of $550 for Solana.
While many factors need to align for Solana to reach that target, it could very well be the cryptocurrency to buy right now, instead of Bitcoin.
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