based on materials from the site - By Coindoo.com
Currently, the token is trading around $191, and its market capitalization exceeds $103 billion, demonstrating resilience as investors weigh both opportunities and risks.
An important proposal, known as SIMD-0326, could reduce the finality time of Solana blocks from about 10 seconds to just 150 milliseconds by implementing the Votor consensus. If this change is approved in epochs 840–842, expected in November 2025, it will mark a significant leap in speed.
Such a reduction in latency makes Solana one of the leading contenders for high-frequency trading (HFT) style DeFi applications, potentially making it suitable for settlement comparable to equities. This is critically important for the overall total value locked (TVL) in Solana DeFi of $11.6 billion. Analysts note that Ethereum's merge in 2022 preceded an 85% increase over six months, indicating similar growth potential if the Solana project is successfully implemented.
Institutional interest is growing after the REX-Osprey SOL ETF
Exchange-traded Fund
">ETF (SSK) recorded $183 million in assets and a seven-week influx of funds. However, the U.S. Securities and Exchange Commission (SEC) has postponed decisions on spot Solana ETFs until November, while Polymarket predicts a 63% chance of approval in 2025.
Approval could replicate Bitcoin's 160% surge in 2024, driven by ETFs, while a rejection risks repeating years of stagnation for XRP, associated with its legal saga. Currently, Solana's staking yield of 7.52% provides some protection against declines, but the dynamics clearly depend on regulatory transparency.
Competition from proprietary blockchains
Arc blockchains from Circle and Tempo from Stripe, set to launch in 2026, could challenge Solana's dominance in the stablecoin payment and transaction space. While Solana currently boasts impressive 65,000 transactions per second and an adjusted monthly volume of $186 billion, competitors with built-in compliance systems, such as KYC-ready protocols, can attract institutional partners.
Liquidity fragmentation is another issue, as the ratio of spot to perpetual contracts for Solana is only 0.27, indicating the dominance of derivatives over spot demand.
Technical forecast
According to Ali Martinez, the key support level for Solana is at $171, where 12.4 million SOL have been accumulated. On the other hand, Fibonacci resistance at $210 appears to be the next breakout zone.
Recent RSI and MACD values show neutral or bullish momentum, suggesting the possibility of Solana consolidating before the next growth phase.
Solana's fate in 2025 depends on two factors: executing latency-reducing upgrades before new competitors join the fray and obtaining approval for its first spot ETF in the U.S. If both of these factors align quickly, Solana may rewrite the narrative for institutional-level DeFi and payments. But if regulatory or technical hurdles slow progress, competing blockchains may seize the initiative.
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