On 1st August 2024, the Solana (SOL) price in relation to the Canadian dollar (CAD) stood at 165 CAD, and thus 3 solana to cad value was 495 CAD. Historically, SOL reached a high of 305 CAD in November of 2021 (3 SOL=915 CAD), but after the FTX crash in 2022, it dropped to 14.7 CAD (3 SOL=44.1 CAD), dropping by 95.2%. In 2023, with upgrades to the network (processing 65,000 transactions per second) and in partnership with Visa to test stablecoin settlements, SOL regained its current value, with an annualized volatility standard deviation of 120%, far greater than that of TSX index of the Canadian stock market at 18%.
Technological strengths underlie long-term potential. Solana TPS (Transactions per Second) is 65,000, one transaction’s cost is 0.001 CAD, and its efficiency is 1,000 times better than Ethereum. If its Firedancer in 2024 increases network stability from 98.5% to 99.9% (target value), the institutional holding ratio at 3 solana per cad will increase from today’s 12% to 25%. Bloomberg data show the 340% increase in trading volume of NFTS on the Solana blockchain during 2023 and the average 1.2 million active daily addresses. Assuming a 30% annual growth rate, the price will be above 300 CAD (3 SOL=900 CAD) by 2025 with a potential return of 82%.
Regulation and risk walk together. In 2023, the SEC classified SOL as an unregistered security (40% chance). If the suit occurs, history would repeat itself where in a week of 2022 it plummeted 50%. Nevertheless, regulatory policies of Canada with respect to cryptocurrencies are relatively liberal. Crypto Asset Markets Act 2024 allows exchanges following this act to conduct business. The users only have to pay 0.5% transaction fees to exchange 3 solana to cad in Wealthsimple (the amount they get is 492.5 CAD). Once Binance Canada withdrew from the market after the registration failure, the users must resort to using the international platform via VPN (with a handling fee of 0.1% but more legal risk).
Compare the return-risk ratio horizontally. For the same amount of capital, if it is invested in 3 SOL (495 CAD), based on the best-case scenario (50% average annual return rate), the worth can be up to 2,516 CAD by 2027. However, with the same amount of capital being invested in Canadian real estate investment trusts (REITs), the average annual return rate was 7%, and it only increased up to 648 CAD during the same time. However, the Sharpe ratio of SOL (0.3) is lower than that of gold (0.8), indicating that its risk-adjusted return is relatively low. The Solana network in November 2022 was offline for 18 hours, which caused its price to decline by 28% in one day and exposed the centralization risk – 70% of validating nodes were owned by the top 10, which was higher than Ethereum’s 35%.
Ecological growth is a significant factor. The DeFi total value locked (TVL) in the Solana ecosystem has increased from 320 million CAD in 2023 to 2.2 billion CAD in 2024. If it reaches beyond 5 billion CAD by the year 2025, the rate of 3 solana to cad can increase in a correlated manner to 240 CAD (3 SOL=720 CAD). At the same time, Avalanche (AVAX) recorded a TVL of 1.8 billion CAD within the same period, with a growth rate of 45%. If Solana maintains its technological lead (confirmation time 0.4 seconds compared to AVAX 2 seconds), its market share can increase from 15% to 25%.
The tax impact needs to be determined. Canada imposes a 50% capital gains tax on profits from cryptocurrencies. If 3 solana to cad is increased from 495 CAD to 1,000 CAD, out of the 505 CAD gains, 252.5 CAD has to be taxed at a marginal tax rate of 29% of 73.2 CAD and the rest of the net gain remains 431.8 CAD. Investing in the Purpose Solana ETF (with an expense ratio of 2.5%) in TFSA account is tax-free, but the erosion return amounts to approximately 12.4 CAD per annum.
in short, 3 solana to cad suits high risk appetite investors with investment horizon of more than 3 years. One should invest no more than 10% of the total assets and set a stop-loss line (if it falls below 120 CAD, i.e., 3 SOL=360 CAD). If you regularly invest on a low-cost platform like Newton (a monthly purchase of 0.5 SOL) and can smooth out the volatility risk, the projected five-year return rate can outdo the S&P 500 index (historical annualized 10% against the optimistic assumption of 35% in SOL).