Solana to Hit $200? This Might Be the Catalyst

Key Insights

• Prediction market platform Kalshi has integrated Solana for direct deposits.
• This integration allows users to fund accounts directly with SOL and is likely to reduce friction for real-world event predictions.
• The move is geared towards providing Solana with a more sustainable utility model.
• Kalshi's partnership with Zero Hash is expected to introduce seamless SOL-to-USD conversions.
• Solana's price is currently trending bullishly around $176, with technical indicators showing an incoming push towards $200.

Solana has long been one of the most popular networks in the crypto space because of its speed and scalability.

However, despite its technological edge, the use cases of the network have mostly been confined to DeFi trading and meme coin speculation.

This may be about to change, though.

According to recent reports, Prediction market platform Kalshi has just announced support for Solana deposits.

This development could mean everything for the cryptocurrency’s liquidity, adoption rates and of course, price.

Here’s how this move could shift the dynamics for SOL this year and beyond.

Kalshi Now Accepts SOL

Kalshi is one of the most popular prediction markets in the US, alongside PolyMarket.

According to reports, this platform now allows users to fund their accounts with SOL, alongside other cryptocurrencies like Bitcoin, Worldcoin, USD Coin (USDC) and others.

Before now, users would have had to convert their crypto holdings into stablecoins or fiat before making trades on Kalshi.

However, now with direct SOL deposits enabled, users can bypass that step entirely.

This step is likely to reduce friction, increase efficiency and of course, add new utility for SOL outside of its typical DeFi applications.

From Meme Coins to Mainstream Prediction Markets

Solana's activity in recent months has been mostly defined by speculative trading, especially with memecoins.

In fact, May alone saw these tokens make up around 65% of Solana’s trading volume, with decentralized exchanges (DEXs) on the network posting over $45 billion in daily turnover at their peak.

While this kind of activity is great for volume and engagement, it doesn’t necessarily show promise in terms of long-term use cases or healthy liquidity.

However, by entering the prediction market space, SOL is creating a more sustainable utility model for itself, and good things are bound to happen.

Users on Kalshi can now stake their SOL on real-world event outcomes like election results, weather patterns or even entertainment milestones like the release of Grand Theft Auto VI.

These cases are grounded in real-world interest and show the world afresh avenue for crypto engagement.

More importantly, this is likely to be one that attracts even more investors.

How This Could Improve Liquidity

Liquidity is very important for any cryptocurrency, when it comes to tokenomics.

This integration is likely to help deepen this factor for SOL in many ways.

For example, with users now using SOL to fund prediction market trades, the token is no longer just sitting idle in wallets or tied up in meme speculation.

Instead, it can now flow between users. As a result, transaction frequency will jump, daily active addresses will triple, and market engagement will become more encouraging than it currently is.

More importantly, once users close out their prediction contracts, those funds don’t disappear.

They return to the Solana network, where they are used for new trades, transferred to wallets, or swapped for other assets.

This continuous cycle of movement is a big boost for liquidity and prices will likely follow suit.

In addition, Kalshi’s partnership with infrastructure provider Zero Hash makes sure that SOL deposits are converted easily into USD for use on the platform.

This smoothens the experience and removes the need for separate conversion steps.

As a result, more crypto-native traders will jump onboard and the network will become more attractive to users who prefer speed and convenience.

Solana Eyes $200

Meanwhile, Solana’s price action currently shows that the market may be reacting to these events.

As of late May, Solana is now trading at around $176 and is inching closer to the psychological $200 level.

Recent price movements also show clear signs of a bullish trend, especially with the 20-day EMA crossing above several longer-term indicators like the 50 and 100-day EMAs.

These are major signs of a golden cross, and Solana is likely to continue further towards the upside.

Solana just needs to break above its 200-day EMA as illustrated above, to access a push towards this target.

If the momentum continues and Kalshi’s integration delivers, we could see SOL break through the $200 zone in the near future.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.