Leo Sun, The Motley Fool
Sat, June 27, 2026 astatine 12:25 PM CDT 3 min read
Solana (CRYPTO: SOL) acceptable a grounds precocious of $295 connected Jan. 18, 2025. That marked a near-190% summation implicit its erstwhile 12 months. But arsenic of this writing, the token trades astatine astir $73. Let's spot wherefore Solana soared, wherefore it pulled back, and wherever it could caput implicit the adjacent 3 years.
What happened to Solana?
Like Ethereum (CRYPTO: ETH), Solana is simply a proof-of-stake (PoS) blockchain that supports staking (locking tokens to gain rewards) and astute contracts (for processing decentralized apps). However, Solana's Layer-1 (L1) blockchain is overmuch faster than Ethereum's L1 blockchain due to the fact that it integrates its ain proof-of-history (PoH) mechanism, which timestamps transactions earlier they're validated, into its PoS statement mechanism.
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Ethereum remains the world's largest developer-oriented PoS blockchain, but Solana has go the second-largest 1 and is gaining caller developers astatine a faster rate. Solana besides processed much transactions than Ethereum successful the archetypal 4th of 2026.
In 2024 and 2025, Solana soared arsenic Circle, Visa, PayPal, Stripe, and different outgo companies utilized its speedy blockchain to settee their stablecoin transfers. More fiscal institutions besides tokenized their assets connected Solana's blockchain. The motorboat of the TRUMP (CRYPTO: TRUMP) coin connected its blockchain was the last catalyst that drove it to its all-time precocious past January. But implicit the past year, Solana pulled backmost amid fears of involvement complaint hikes and a information breach this April, spooking its investors.
Where volition Solana spell implicit the adjacent 3 years?
Solana's diminution was disappointing, but it inactive has much irons successful the occurrence than different altcoins. If the Senate yet passes the CLARITY Act for cryptocurrencies -- and sets wide guidelines for stablecoins and tokenized assets -- Solana's terms should stabilize.
Solana besides precocious gained a ballot of assurance from Moody's, which straight integrated its recognition ratings into Solana's blockchain to screen tokenized bonds and fixed-income securities. Its upcoming Alpenglow upgrade successful the 2nd fractional of 2026 volition further boost its web speeds and widen its moat against Ethereum and different PoS blockchains.
As those catalysts footwear in, Solana's spot ETFs -- which the SEC approved successful precocious 2025 -- should pull much retail and organization investors. Bitcoin's (CRYPTO: BTC) adjacent halving rhythm successful 2028 should besides gully much investors backmost to the chilly cryptocurrency market.

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