Solana, a leading layer-1 blockchain, has officially reached its fifth anniversary since its mainnet launch in 2020. Over the years, it has become one of the most active networks in terms of transaction volume and is now being considered for inclusion in a US government digital asset reserve.
Since the first Solana block was minted on March 16, 2020, the network has processed over 408 billion transactions and facilitated nearly $1 trillion in decentralized exchange volume—solidifying its position among the top blockchain platforms.
Solana’s Launch During the COVID-19 Era
Although Solana’s foundation was laid in 2017 with Anatoly Yakovenko’s white paper introducing the concept of “Proof of History,” the network officially launched in March 2020—coinciding with the start of the COVID-19 pandemic.
Backed by venture capital firm Multicoin Capital, Solana secured around $20 million through private token sales in mid-2019. Shortly after, additional funding fueled its rapid growth. By late 2021, during the peak of the bull run, Solana reached a staggering $77.8 billion market cap, earning it the title of a potential “Ethereum killer.”
The 2022 Market Crash and Solana’s Resurgence
The 2022 bear market and the collapse of FTX—a major supporter of Solana—led to a sharp decline in its valuation. The network’s market cap plummeted to $3 billion, a 96% drop from its all-time high.
FTX had acquired approximately 58 million Solana tokens, then valued at $7.4 billion, to support its scaling efforts. However, when FTX filed for bankruptcy in November 2022, the aftermath caused Solana’s price to hit a low of $8.30 in late December.
Despite these setbacks, Solana made an astonishing recovery in 2023, with its market cap surging nearly 50 times, surpassing $140 billion by early 2025.
Memecoin Boom Drives Solana Adoption
A key driver behind Solana’s comeback was the explosion of memecoins in 2023 and 2024. The sector, valued at over $100 billion, saw Solana-based projects dominate the scene.
Popular tokens such as Bonk (BONK), Dogwifhat (WIF), and Fartcoin (FARTCOIN) reached multibillion-dollar market caps. Additionally, the rise of Solana-based launchpad Pump.fun contributed significantly to the network’s adoption, generating over $540 million in revenue in a single year.
One of the most talked-about memecoins was the Trump (TRUMP) token, launched by individuals close to then-President Donald Trump in January 2024. The token hit a $14.6 billion market cap within two days before experiencing a sharp decline.
At its peak, the TRUMP memecoin helped push Solana’s decentralized finance (DeFi) total value locked (TVL) to $14.2 billion, making it the second-largest DeFi ecosystem after Ethereum.
Solana Introduces Crypto Phones
In May 2023, Solana entered the hardware market with the launch of the “Solana Saga” smartphone, featuring a built-in crypto wallet. While initial sales were slow, demand skyrocketed after a 30 million BONK airdrop incentivized purchases.
A second model, the “Solana Seeker,” was introduced later in 2023, designed specifically for memecoin trading and token rewards. The two devices have amassed over 140,000 preorders, with the Seeker currently priced at $500.
Network Challenges and Future Improvements
Despite its success, Solana has faced recurring network outages, at times halting block production for nearly a full day. Validators have had to restart the network multiple times due to congestion issues.
To improve stability, an independent validator client called Firedancer is set to launch on Solana’s mainnet in 2025. This solution aims to enhance network diversity and resolve transaction failures caused by Solana’s reliance on Google’s QUIC protocol.
Solana to Be Part of Trump’s Digital Asset Reserve
In a recent policy shift, the Trump administration announced plans to include Solana in the newly established Digital Asset Stockpile, confirmed via an executive order on March 7.
Initially, the US did not appear to hold any Solana, according to Arkham Intelligence. However, the White House has committed to conducting a full audit of its crypto reserves.
Solana was originally announced as part of a US reserve asset plan on March 2. While the government later prioritized Bitcoin for its primary holdings, the Digital Asset Stockpile is set to include Solana alongside Ethereum (ETH), XRP (XRP), and Cardano (ADA).
As of now, Solana is priced at $128.17, ranking as the sixth-largest cryptocurrency with a market cap of $64.5 billion. Despite being 56% below its peak, the network remains a dominant force in the crypto space amid ongoing economic uncertainty.
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