Earlier this year, Solana emerged as a high-priced cryptocurrency, valued at around $300. However, it has since experienced a significant decline, now trading near $100. Investors in the crypto market currently face a choice between high-priced assets like Bitcoin and Ethereum, or lower-priced cryptocurrencies valued under $2. Yet, the midrange segment of the crypto landscape holds promising opportunities, particularly with Solana, which is now available at a 60% discount compared to its all-time high this year.
Solana’s explosive upside potential has made headlines since its launch in early 2020. The cryptocurrency showcased remarkable returns, surging by over 11,171% in 2021 and climbing an additional 919% in 2023. Despite these gains, Solana has also exhibited significant volatility. Following a staggering 94% loss in 2022, the cryptocurrency has struggled this year, down 35%. In comparison, Bitcoin, a market benchmark, has only seen a 6% decline in 2025.
Dubbed a potential “Ethereum killer,” Solana competes in the same space as Ethereum, both offering Layer 1 blockchain networks equipped with smart contract functionality. However, Solana differentiates itself with its speed. It has recently demonstrated capabilities of processing an astonishing 1 million transactions per second, overshadowing Ethereum, which historically processed 15 to 30 transactions per second until recent upgrades.
High-profile investors, such as Cathie Wood of Ark Invest, have highlighted Solana’s disruptive potential, particularly in the decentralized finance (DeFi) sector, where transaction speed is crucial. A recent report from 21Shares noted that Solana’s ecosystem is more advanced now compared to Ethereum during its early years, having generated nearly $3 billion in revenue in the past year, coming from diverse sources beyond crypto trading, including artificial intelligence.
In addition, the recent launch of exchange-traded funds (ETFs) focused solely on Solana adds another layer of attractiveness for investors. These new ETFs provide avenues for investors to gain exposure to Solana’s market price without the inherent risks of direct crypto investment. Many of these ETFs are available through traditional brokerage accounts and are priced below $100, making them accessible to a broader range of investors. Notably, some of these funds, like the Bitwise Solana Staking ETF, also offer staking rewards, increasing the potential for passive income.
Investors currently have dual pathways: directly investing in Solana through cryptocurrency exchanges or opting for the new ETFs that track its price while providing staking benefits. While opportunities abound, caution is warranted. Solana’s historical volatility raises concerns, especially following the substantial losses witnessed in 2022.
As 2025 progresses, there are fears regarding Solana’s exposure to the meme coin market, with a significant volume of trading activity consisting of retail speculation on these assets. Legal risks related to its ties with meme coin platforms have also been a topic of concern. However, for those willing to navigate the associated risks, Solana may represent an excellent investment opportunity at its current valuation. Its impressive past performance—with returns exceeding 86% in four of the last six years—suggests the potential for a resurgence, with optimistic projections for 2026 suggesting the possibility of doubling its current value.
