Solana (SOL) is currently the fifth biggest coin on CoinMarketCap with a market capitalization exceeding $106.2 billion. It was founded in 2017 by Anatoly Yakovenko who aimed to revolutionize blockchain technology by adding to his platform high-speed and low-cost transaction capabilities.
Brief History of Solana
Unlike the first generation of cryptocurrencies, such Bitcoin, Dogecoin, Litecoin, etc, which run on Proof-of-Work (PoW), and Cardano with its Proof-of-Stake (PoS) protocol, Solana runs on Proof-of-History (PoH) consensus mechanism. It puts timestamps on transactions in order to make blockchain process streamlined and enable the network to have a throughput of up to 65,000 transactions per second. This high ambitious throughput and scalability combined with quite low transaction fees compared to those on Ethereum have made Solana widely known in the blockchain space as the “Ethereum Killer”.
Numerous developers prefer to build their dapps, non-fungible tokens (NFTs), and decentralized finance (DeFi) platforms on it rather than on Ethereum. The entity that supervises and adopts the network is the Solana Foundation located in Switzerland. What it also does is provide funding to innovative projects who build on Solana and ensures collaboration with major players in the blockchain space.
Solana’s Frequent Outages
While Solana does have an ambitious vision, it has still faced numerous challenges that raise questions concerning its reliability as an alternative to well-established Ethereum. In the past few years, including the current 2024, Solana has seen several big outages in the periods when the demand for this network peaked, which led to temporary network collapses.
These issues are rooted in its partly centralized structure since Solana relies on quite a small number of validators that are equipped with high-performance hardware. This gear allows the network to process transactions much faster, however, it also makes Solana vulnerable to congestion, just like Ethereum, and technical malfunctions and glitches that happen frequently. While critics believe that these major incidents tarnish the reputation of the network, Ethereum keeps evolving and addressing its own scalability issues by adopting upgrades, which include the transition to Proof-of-Stake conducted in 2023.
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Solana’s Price Prospects for 2025
While it is difficult to see where Solana price can go next year, its price trajectory largely depends on how this blockchain platform can handle its challenges. Scenarios are optimistic and show growth to over $300 should Solana manage to successfully solve its technical difficulties, maintain consistent performance, and keep constantly expanding its ecosystem. The platform has quickly become home for dapp, DeFi, and NFT developers, as well as let many popular meme coins spring from it into the cryptocurrency space.
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All these factors show that Solana’s potential for partnerships and institutional adoption is quite high, while further technological advancements have high odds of boosting Solana’s market value and attract more investors and developers.
Solana 2025 Price Prediction
Many analysts and crypto experts have a bullish outlook for Solana and its price development in 2025. However, it will all depend on whether Yakovenko’s blockchain will be able to expand its innovative technology and build a stronger market position. Solana’s innovative and high-speed Proof-of-History protocol gives it a high potential to capture substantial market share in the decentralized finance, NFT, and gaming sectors.
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Experts see several milestones that are necessary for Solana to take in order to see an extensive price boost in 2025. The first one is institutional adoption which would be massive if exchange-traded funds (ETFs) based on Solana (futures or spot price) launched, similarly to those based on Bitcoin and Ethereum that were adopted this year. Besides, should Solana become used by institutions for decentralized finance products, its status could certainly be elevated.
Another important goal is the ecosystem growth by attracting new builders and developers. An expansion of payment systems like Solana Pay could significantly enlarge its daily transaction volume.
Solana could ride a bullish wave of the upcoming altcoin season which is expected to start soon once the Bitcoin post-halving rally reduces, allowing investors to send funds into altcoins for additional profits on promising coins, like Solana, XRP, DOGE, Litecoin, and many others. While Bitcoin and XRP fans expect the administration of the new US president Trump to establish a favorable cryptocurrency regulation framework, it will be not just those two coins that would win from this. Solana is also likely to see a major price boost should this happen.
Besides, now that the current SEC chair Gary Genlser has announced his resignation in 2025, the odds are high that Trump would appoint somebody less aggressive towards crypto to take up that position. Overall, should Solana achieve these milestones next year, bullish predictions have it that the price may go as high as $500 per SOL.
