One of the key factors supporting Solana's growth is the Firedancer client, a new validator software designed to radically improve the network's efficiency. Firedancer aims to process 1 million transactions per second (tps), enhancing Solana's already impressive speed and scalability. In addition to transaction throughput, Firedancer will improve the network's reliability by introducing an additional validator client to ensure continuous operation in case of issues with the main client.
This technical upgrade could significantly enhance the appeal of Solana, especially for developers and institutions seeking a high-speed, reliable blockchain. If successful, Firedancer could solidify Solana's position as a dominant player in the blockchain space, particularly in high-performance applications such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
ETF approval
Another favorable development for Solana in 2025 is the potential approval of an exchange-traded fund (ETF) based on Solana. The market shows growing optimism as the chances of Polymarket for ETF approval have increased from 58% to 71% since Christmas. ETF approval could provide institutional investors with a more accessible way to benefit from Solana's growth, which could potentially increase demand and further raise the value of SOL.
Unlocking tokens worth $2 billion: a warning for the future of SOL
Aftermath of FTX and Token Unlocking
Although Solana has a promising technical roadmap, it will face a significant challenge in March 2025 when over $2 billion in SOL tokens are unlocked. This is part of the FTX bankruptcy restructuring, where major investors like Galaxy Digital acquired a significant portion of Solana's assets at a discount. Unlocking 11.2 million SOL tokens could lead to significant selling pressure, which may negatively affect the price of SOL in the short term.
Timing of the unlock is critical. Historically, large token unlocks have led to increased supply, which can put downward pressure on the price, especially if overall market sentiment is weak. As SOL investors anticipate this event, the market may take a cautious stance, potentially leading to volatility or stagnation in price.