March 16, 2025 marks the 5-year milestone since the first block was recorded on the Solana blockchain. From a young project, Solana has risen to become the fourth largest Layer-1 blockchain in the world. However, this anniversary occurs amidst a significant decline in network activity.
The Challenging Journey and Rise of Solana
Launched in 2020, Solana quickly attracted attention thanks to its groundbreaking Proof of History (#PoH ) technology. However, the biggest shock came in November 2022 when the FTX exchange collapsed, leading to the bankruptcy of Alameda Research – one of the project's largest investors. The price of SOL plummeted below 10 USD, raising doubts about the future of this network.
However, Solana has made a remarkable comeback in 2024 and early 2025. Thanks to significant airdrops, important network upgrades, and the explosion of memecoins, SOL has reached a new peak of 270 USD before adjusting to 128 USD at the present time.
The Numbers Speak After 5 Years
Despite facing numerous challenges, $SOL has achieved many significant milestones:
408 billion transactions have been executed on the blockchain
1,300 validators maintain network operations
987 billion USD in trading volume processed on DEXes in the ecosystem
On the occasion of its 5th birthday, many important figures shared their thoughts on Solana's development journey. Co-founder Anatoly Yakovenko posted a brief but meaningful message: "Congratulations on block 0 of Solana to all who are celebrating!"
Georgios Konstantopoulos, CTO of Paradigm, also recalled an old message from 2019, when Yakovenko personally invited him to operate a validator for #solana but was declined due to network conditions not being met. Now, looking back at Solana's development, this may be one of his most regrettable decisions.
Signs of Declining Network Activity
Despite strong development, the number of active addresses on Solana has been gradually decreasing since November 2024. If this trend continues, March 2025 may witness the lowest levels in months.
The main reason stems from the cooling off of pump.fun, the memecoin issuance platform that contributed to a surge of transactions on Solana. After numerous scandals, including being turned into a 'darkweb' on the blockchain, this platform has lost its appeal. Particularly, the memecoin LIBRA scandal involving the President of Argentina further decreased trust in the memecoin ecosystem, leading to a drop in transactions.
Firedancer: A New Hope for Solana?
Amidst the decline, the community is hoping for Firedancer – a new client developed by Jump Crypto to enhance performance and stability for Solana.
Currently, Solana relies on a single client from Solana Labs, posing centralization risks. Firedancer will help decentralize the network, accelerate transaction processing, and reduce the risk of network crashes. Firedancer is expected to launch by the end of Q2 2025, opening a new chapter for Solana.
Will Solana Get ETF Approval?
One factor that could drive Solana's development in the near future is the launch of the Solana ETF. Following the success of ETF $BTC and $ETH , many asset management companies have filed for a SOL ETF license with the SEC.
Although the SEC remains cautious with altcoins, recent changes in crypto policy may present opportunities for Solana. If the SOL ETF is approved, it would be an important step, helping this blockchain attract institutional capital and affirm its position in the global financial system.
Conclusion
Solana has come a long way in 5 years, from an emerging blockchain to one of the leading Layer-1s. Despite facing a decline in activity, innovations like Firedancer and the potential ETF could open a brighter future for Solana. Will Solana maintain its growth momentum or will it stall? The answer will become clearer in the coming months.