Solana (SOL) at the End of 2021: A Year in Review

While Solana has been around since early 2020, the project only blew up in 2021, after the development of DeFi protocols and the NFT craze caused Ethereum gas fees to skyrocket so high that both developers and users started viewing them as impractical and unreasonable. In search of better solutions, they turned to a number of blockchains, including Solana, which, slowly but surely, attracted more and more people as the year progressed.

With developers coming to its network and launching DeFi protocols and NFT projects, even more people followed. Meanwhile, Solana’s native token SOL received more and more use cases, and greater demand, which led its price to skyrocket from $1.8 in January to an ATH of over $250.

Solana price history: From launch until 2021

Solana launched in April 2020, with a price of $0.78. After a brief jump to $0.88, the price crashed to $0.53, and it spent a good portion of the summer trying to breach a resistance at $0.7. It finally managed to do it in mid-July, which is when it started a surge that would take it over $4.5.

The surge started in mid-July 2020 when a sudden increase allowed SOL to hit $1.2. After this, its price dropped down to $0.8, only to rally again, and this time, the coin managed to go as high up as to $1.7.

After another brief correction, its price skyrocketed, this time to $3.76, reaching this record on August 12th. Once again, its price had to go through a correction which led it to a support at $3, from which SOL made its final rally to the all-time high at $4.78.

From that point forward, its price got caught up in a bearish trend that lasted from late August until early November, leading it from this new record back to $1.5. Fortunately, this support stopped the drop, and it allowed it to recover to $2. While SOL did breach $2 several times throughout November, it never managed to stay above it for too long, and ultimately, its price dropped back down to $1.5 at the end of the month.

However, in the final days of December 2020, it started a new rally that would take it higher than ever before in months that followed.

Solana in 2021

In 2021, SOL price continued the trend that started in late December, slowly but surely heading up. Its progress was rather steady, and from January first when its price was at $1.8, it kept going up slowly until reaching a resistance at $45 in late April. It finally managed to breach this resistance in mid-May, but just as it did so, the crypto industry suffered a massive crash.

Most coins, including Bitcoin itself, saw their prices cut in half. The crash came after Elon Musk announced that Tesla will no longer accept Bitcoin payments due to the coin’s carbon footprint. Whether or not this is what caused the crash has been a topic of many debates, but the fact is that the prices dropped very quickly after the announcement was made.

As for SOL, its own price saw a drop as well, going from $50 to $25, and losing 50% along the way. For the next several months, from May 23rd until August 12th, its price fluctuated between a support at $25 and a resistance at $40.

The coin finally managed to breach the resistance in mid-August and head up, which eventually led it to a brand new ATH, higher than any previous record.

The rally that started in mid-August took Solana up to $191, which is a milestone it reached less than a month later, on September 8th. This was a massive surge, and the price skyrocketed in a very brief amount of time, which, naturally, led to a major correction, as well. The price dropped from $191 to $150 in less than two weeks. However, after finding a strong support at this level, SOL was soon able to recover and surge again.

This time, it managed to go up to $175, but the resistance pushed it back down to $150. SOL then surged again and managed to break through the resistance and hit a new ATH at $210. This level pushed it down again, although only to $185 this time, from where it bounced back up, reaching its next and final ATH to date — $260. This milestone was reached on November 6th — around a week before Bitcoin hit its own biggest milestone so far.

As for SOL, it started crashing again, which led it to drop to $195 by November 18th. From there, it tried to go back up two more times, and both times, it was stopped by a resistance at $230. After reaching it for the second time on December 2nd, its price got rejected to $153.

Hitting this bottom at December 14th, SOL once again started to recover, which allowed it to surge up to $200 only a day after Christmas. However, with the start of the last week in 2021, the market saw another crash, and SOL followed, dropping down to $170.

On the last day of the year, December 31st, Solana price started to recover once more, going up by 0.25% in the last 24 hours, and reaching $175.30 at the time of writing.

Conclusion

Solana has had a very successful year in terms of price behavior, development, as well as adoption. Thanks to its advanced technology, many turned to it after giving up on Ethereum’s network, and Solana’s ecosystem started to grow rapidly, which reflected on the price of its native token, SOL: Given its price’s behavior, it is likely that SOL will continue to surge in 2022, as demand for it and its use cases only continue to increase with every new project that emerges in its ecosystem.

To learn more about this token visit our Investing in Solana guide.