The cryptocurrency world witnessed a pivotal milestone in November 2025, as Solana (SOL) briefly surpassed a $100 billion market capitalization—marking it as the fourth-largest crypto asset by valuation. This achievement signals renewed confidence in Solana’s ecosystem, driven by strong on-chain activity, institutional interest, and growing adoption across decentralized finance (DeFi), meme coins, and real-world assets (RWA). But with rapid growth comes scrutiny. While supporters hail Solana as a leading contender to rival Ethereum, critics continue to question its decentralization and long-term sustainability.
This article dives into the driving forces behind Solana’s resurgence, analyzes expert predictions, and examines the technological advantages and structural challenges shaping its future.
Solana’s Comeback: From FTX Fallout to Market Leader
After hitting rock bottom in late 2022—when SOL dipped below $10 following the FTX collapse—Solana has staged one of the most impressive comebacks in the crypto space. Thanks to relentless development, a vibrant developer community, and explosive growth in user engagement, the network has reemerged stronger than before.
Key sectors fueling this revival include:
- Meme coins – Platforms like pump.fun have turned Solana into the go-to chain for launching viral tokens.
- DeFi and DEX trading volume – Surpassing Ethereum in monthly decentralized exchange volume.
- RWA and institutional interest – Traditional finance players are increasingly exploring Solana for tokenized assets.
- DePIN and infrastructure innovation – Decentralized physical infrastructure networks are gaining traction on the network.
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The momentum hasn't gone unnoticed. Major financial institutions and industry leaders have voiced strong support for Solana’s trajectory.
Institutional Confidence: Why Experts Are Bullish on SOL
Bitwise CEO: $100B Valuation Is Just the Beginning
On November 10, 2025, Bitwise CEO Hunter Horsley predicted that Solana would break the $100 billion market cap threshold—an event that unfolded within hours. At that time, only Bitcoin, Ethereum, and Binance Coin had achieved such a valuation (excluding stablecoins like USDT). This milestone underscored Solana’s emergence as a top-tier blockchain platform.
渣打銀行 Analyst: SOL Set to Outperform BTC and Hit New Highs
Geoff Kendrick, digital assets researcher at Standard Chartered Bank, forecasts that SOL will inevitably reach new all-time highs before year-end—surpassing its previous peak of $260 in November 2021. He also believes Solana could outperform both Bitcoin and Ethereum in the near term, citing strong fundamentals and increasing investor appetite.
Kendrick previously accurately predicted Bitcoin’s rise to $80,000 ahead of the U.S. election, reinforcing his credibility in market analysis.
Arthur Hayes: “Solana Is High-Beta Bitcoin”
Arthur Hayes, co-founder of BitMEX, described Solana as “high-beta Bitcoin” during an appearance on the Unchained podcast. He explained that due to its high liquidity and correlation with broader market trends, Solana tends to amplify gains when Bitcoin rallies.
Hayes expressed greater optimism for SOL over ETH, criticizing Ethereum’s slow transaction speeds and narrative stagnation. In contrast, he praised Solana’s speed and growing “mind share,” suggesting it could outpace Bitcoin during bull markets.
On-Chain Dominance: Metrics That Tell the Story
Beyond sentiment, hard data confirms Solana’s rising dominance in the blockchain ecosystem.
Record Monthly Active Addresses
In October 2025, Solana recorded over 123 million monthly active addresses, a historic high and a 42% increase from September. For context, Ethereum and other EVM-compatible chains combined saw around 57 million active users during the same period, according to a16z’s State of Crypto Report.
This surge is largely attributed to meme coin mania and platforms like Raydium and pump.fun driving mass participation.
DEX Trading Volume Surpasses Ethereum
According to Defillama, Solana’s decentralized exchange (DEX) trading volume reached **$52.16 billion** in October—outpacing Ethereum’s $41.5 billion. This shift highlights users’ preference for faster transactions and lower fees on Solana.
Over $600 Million Bridged from Ethereum
Data from SolanaFloor shows that more than $600 million worth of assets were bridged from other chains to Solana in October alone—over 90% originating from Ethereum. This “capital bleed” reflects growing confidence in Solana’s performance and ecosystem depth.
Strong Funding Activity in Q3 2025
Messari reported that 29 Solana-based dApps raised $173 million in Q3 2025—an increase of over 54% from the previous quarter. Notably, despite fewer funding rounds, total investment hit its highest level since Q2 2022. Franklin Templeton is reportedly preparing to launch a money market fund on Solana, further bridging TradFi and DeFi.
Core Advantages: Why Solana Stands Out
Solana co-founder Anatoly Yakovenko has emphasized three key strengths:
- High Throughput Without L2s
Unlike Ethereum, which relies on Layer 2 solutions for scalability, Solana focuses on optimizing its Layer 1 to handle massive transaction loads natively. - Synchronous Composability
Multiple DeFi applications can interact in real-time on a single chain—a critical advantage for complex financial operations that require atomic execution across protocols. - Permissionless Access
Anyone can run a validator node or submit transactions directly, promoting greater decentralization in access (though not necessarily in control).
Yakovenko argues that while L2s offer short-term relief from congestion, they often inherit centralization risks through centralized sequencers. In contrast, Solana aims to deliver scalable performance without sacrificing composability.
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Challenges Ahead: Centralization Concerns and Criticism
Despite its strengths, Solana faces persistent criticism—particularly around centralization.
Edward Snowden, during a speech at the Near Redacted conference in Bangkok, referred to Solana as “born in prison,” citing its heavy reliance on venture capital funding. He warned that early investors may exert disproportionate influence over governance and development direction.
While acknowledging Solana’s technical achievements, Snowden stressed that true decentralization requires independence from institutional capital—a challenge the project must confront as it scales.
Other concerns include:
- Network outages during periods of high congestion
- Concentration of validator nodes among a few large entities
- Dependence on centralized infrastructure providers
These issues don’t negate Solana’s progress but highlight areas needing improvement to ensure long-term resilience.
Frequently Asked Questions (FAQ)
Q: What caused SOL’s price surge in late 2025?
A: The rally was fueled by rising institutional interest, meme coin activity on platforms like pump.fun, increased DEX volume, and positive sentiment ahead of potential spot crypto ETF approvals—including speculation around a future SOL ETF.
Q: Is Solana more scalable than Ethereum?
A: In terms of raw transaction speed and cost-efficiency, yes—Solana processes tens of thousands of transactions per second at sub-cent fees. However, Ethereum prioritizes decentralization and security, using L2s to scale while maintaining robust consensus mechanisms.
Q: Can Solana become the “Ethereum killer”?
A: While still behind Ethereum in total value locked (TVL) and developer mindshare, Solana has made significant strides. If it continues innovating while addressing decentralization concerns, it could emerge as a major competitor rather than a replacement.
Q: Why are meme coins so popular on Solana?
A: Low transaction fees and fast confirmation times make Solana ideal for launching and trading speculative tokens. Tools like pump.fun have democratized token creation, leading to viral trends and massive user engagement.
Q: Will there be a Solana ETF?
A: There is growing speculation about a spot SOL ETF filing in 2025, similar to recent developments with Ethereum. Analysts like Nate Geraci predict multiple issuers may submit applications soon—especially if regulatory sentiment remains favorable post-election.
Q: How does cbBTC benefit Solana?
A: cbBTC, launched by Coinbase, brings native Bitcoin yield opportunities to Solana users. By enabling BTC-backed applications within Solana’s DeFi ecosystem, it enhances cross-chain liquidity and utility.
Final Outlook: The Road Beyond $100 Billion
As of this writing, SOL hovers around $210, with market cap nearing $100 billion once again. While still about 6.18% of Bitcoin’s valuation and 26.17% of Ethereum’s, Solana’s pace of innovation suggests room for substantial growth.
Core keywords driving search interest include:
Solana, SOL price prediction, Solana vs Ethereum, meme coins on Solana, Solana DeFi, SOL ETF, blockchain scalability, and crypto market trends 2025
With strong on-chain metrics, growing institutional backing, and a vibrant community, Solana is well-positioned for continued expansion—if it can balance scalability with decentralization.
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