Down 43% this year so far, Solana (CRYPTO: SOL) holders are doubtlessly ready for their fortunes to turn. Some have conjectured that a big rally is right around the corner. Others suggest that the chain is on its deathbed. The historical data suggest that a near-term pop is likely to occur, though it might not disrupt the broader downtrend.
So is Solana going to go on a tear, or peter out entirely?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why this isn’t the moment to hold your breath
Let’s start by throwing some cold water on the idea that Solana’s price can simply make a V-shaped reversal back to its highs.
Aside from the ongoing crypto bear market, the broader macro environment isn’t conducive to any coins experiencing a roaring rally. That doesn’t mean it’s impossible for assets to rise in price, or even that it’s impossible for coins to rise by a lot, but it does mean that the fuel for a breakout is in short supply, which lowers the price ceiling for a rally and the floor for a further decline at the same time.
In short, liquidity constrains every altcoin rally, and liquidity isn’t available for cryptocurrencies. The Federal Reserve is facing higher-than-desired core inflation, and an interest rate hike now looks likelier than a cut. Whereas cuts tend to stoke liquidity, hikes tend to starve it. Furthermore, most of the market’s attention is on the tech sector, with memory chips, semiconductors, and AI companies, not to mention a handful of massive IPOs, capturing a lot of the available capital.
And that’s before even approaching the fact that sentiment about Solana is very poor right now.
There could be a future setup forming
Solana probably won’t go the way of the dodo despite its low odds of rallying here.
Alpenglow, the consensus overhaul and next big update for the chain, went live on a community test cluster on May 11. It could launch sometime in the third quarter of 2026. If it does, transaction finality on the chain will fall dramatically from 12.8 seconds to roughly 100 to 150 milliseconds, making it faster than a typical credit card authorization (which takes from 1 to 3 seconds). The redesign also frees up block space that’s currently consumed by vote transactions, so it’ll be a massive unlock for Solana’s throughput capacity. And it’s already the leading chain in terms of its throughput, so one of its distinctive strengths is going to be accentuated even more.
