In today’s crypto for advisors, Josh Olszevikz Canary provides the breakdown of Solana from Capital – where it comes from, and what is happening with the property today.
Then, Alec bakeman Thoughts for investors in answering questions about the history of Solana from PSALEO and asking a specialist.
– Sara Morton
Rise of Solana: Road for flexibility, regulation and adoption
Solana has emerged as a malignant player in the blockchain Arena, which shows remarkable flexibility in front of significant challenges. Despite the failures such as FTX collapse and network outage, Solan has experienced adequate growth since its original tokens, Sol, with Sol, since its climb in 2022. The appeal of the platform lies in its high speed, low -cost transactions, it is in the position as a favorite option for developers and users. However, concerns about centralization persist, a limited number of verifications and a network dependence on high hardware requirements. While Solana works on a proof-of-statue unanimous mechanism, offers scalability and stacking yields, the legal classification of sool tokens remains a controversial issue in the United States, which has so far provided certain guidance with the Securities and Exchange Commission.
Amidst the global disintegration of the Kovid -19 epidemic, Solana Labs launched Solana Blockchain and its original token, Sol in March 2020. Supported by major venture capital firms including A16Z, Jump, Multicin Capital and Polychen Labs, as well as now-default Almeeda Research, Low-Spading, such as Etharium (Eth), Binen Smart Chen (BNB) and Tron (TRX). Competitive platforms, such as avalanche (AVAX), polekdot (dot), and nearby protocol (near), later that year, intensifies the race for smart contract dominance.
Solana works on a proof-of-set consensus mechanism, which allows users to secure the network and stake tokens and participate in governance. Unlike the proof-of-work of bitcoin, proof-of-set networks such as Solana rely on the verifications-the institutions are assigned to maintain account books and processing transactions. The rule of Solana is partially affected by a representative democracy, stake-loving voting, where the most stable property verifications have the most impact.
Solan’s early speed was fuel by support of Sam Bankman-Fride and now-Difunction FTX Exchange, which portrayed Solana as a sharp and more scalable option for the atherium. Institutions of Bankman-Fride invested heavily in the ecosystem and created significant infrastructure around it. However, the collapse of FTX and Almeda research detected physical centralization risks at the end of 2022. Both firms held important positions in Sol, and their bankruptcy triggered a sharp sale, which raised questions about token distribution and flexibility of the ecosystem.
In 2023, Solana faced further investigation, when SEC, under the Chair Gary Gennsler, recognized Sol as a possible unregistered security in cases against Binens and Coinbase. Robinhood later removed Sol, leading to an extreme reduced property, which had only crossed the FTX Fallout. However, Sol appreciated around 700% between October 2023 and March 2024, which reflects strong retail demand and growing developer activity despite the regulator ambiguity.
The regulator tide began to shift at the end of 2024. Robinhood developed Sol in November, cited the policy guidance and customer interest to be developed. In early 2025, the SEC dismissed its case against the coinbase, under its newly appointed president Paul Atkins and stopped the proceedings against Binens. While the classification of Solan is unresolved, the industry estimates a modified structure that can be considered “adequately decentralized” to blockchain projects, which leads to lack of laws of securities. Recent approval of crypto-based ETFs indicates further regulatory acceptance and can provide a route for wider institutional participation.
Despite the previous failures, Solana has emerged as a leading platform for retail activity, especially in rapidly growing areas of meme coins and NFT. Phantom, a self-custdy wallet manufactured for Solan, reported 10 million monthly active users, over 850 million transactions and 24 million mobile app downloads in 2024. The January 2025 launch of a notable catalyst Trump Coin was, which reached an all -time high of $ 300 with Sol.
Daily transactions
Source: Bloomberg Terminal
Although network reliability concerns persist, with seven temporary blockchain outage since 2020, Solan continuously ranks in top blockchain in terms of daily active users, quantities of transactions, decentralized exchange activity and fee production. However, in decentralized finance and real -world asset applications, the atherium remains prominent, solana still follows in the major matrix, including total value lock and circulating stabelin.
comparison table
Source: https://www.stakingrewards.com/
From an investment perspective, Sol has historically traded as a high-bit property relative to bitcoin, which is similar to equity behavior such as strategy. From the end of 2024, some firms have started copying the strategy playbook, collecting capital to acquire Sol for their balance sheet. Although it can increase short -term demand, long -term efficacy will depend on continuous network, regulator clarity and institutional trust.
– Josh Olsesevicz, Portfolio Manager, Canary Capital
Ask a specialist
Q. Why are investors interested in Solana?
Solana stands out for its high speed, low charges and growing ecosystems:
- Display -Solana can handle 65,000 transactions per second with disability in seconds, which is ideal for real -time applications such as trading, gaming and payment.
- cost efficiency -Fce is consistently under one percent, which is attractive to matters of retail-driven use.
- Ecosystem growth Platforms such as Brihaspati (DEFI) and Helium Mobile (Telecom) are expanding the use of the real world.
- Big name -The partnership with Viza and Shopif has strengthened the position of Solana as a serious layer -1 contender.
With a loyal community and strong motion, Solana has emerged as a high-beeta play on blockchain purposes and scalability.
Q. What should investors see while evaluating Solana?
Investors should monitor the basic principles of technical and ecosystems:
- Network stability – After a history of outage, Solana is introducing a firedancer, a new verification customer designed to increase reliability and throwkut.
- Chain Matrix – Daily active users are more than 1 million. The Defi TVL has recently crossed $ 4 billion, which is powered by the use of strong NFT versions and apps.
- Tocharms – Sol has a decreasing inflation schedule and high stacking partnership (~ 70% supply is stacked).
- Regulatory speed – ETF applications are pending from Vaneck and 21Shares, and any US approval will be a significant milestone and will build institutional flow for solana.
Tracking is important for understanding the power of development activity, use and upgradation of Solana.
Q. What are the biggest risk of investing in Solana?
Solana holds high reverse capacity, but it is also a meaningful risk:
- Past volatility – Network faced several outages between 2021 and 2023, which hurt the investor’s confidence. Stability has improved, but is under investigation.
- Regulatory pressure – Sol was mentioned in 2023 as a possible unregistered security in SEC cases against coinbase and binens.
- Centralization concerns – An important part of the token went to internal formulas, and the verification set is much less decentralized than the atherium.
- Market volatility – Solana is closely associated with speculative trends, such as memecoin and NFT boom, leading to rapid price.
- Institutional construction – A significant increase in institutional building is taking place on atherium blockchain.
For all its innovations, Sol has risks powered by both basic things and narrative speed.
, Alec Bakeman, Vice President of Growth, Psalion
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