Solana Gains Momentum as Platform for Tokenized Assets Amid Legal Risks and ETF Growth

• Solana’s tokenized asset trading volume reached $872 million as of January 2026, signaling growing demand for the chain as a medium for transactions.
• The approval of Solana spot ETFs in late 2025 has introduced traditional investors to the market, but inflows have been modest so far.
• A lawsuit involving Solana Labs and the Solana Foundation for their alleged role in the Pump.fun scheme introduces significant uncertainty for investor sentiment.

Solana is emerging as a key platform for tokenized assets and real-world blockchain applications. As of January 2026, $872 million in tokenized assets was trading on the chain. The blockchain's fast finality and low transaction fees position it as a scalable infrastructure for industries like finance, gaming, and IoT. Solana’s ability to handle thousands of transactions per second with minimal fees supports use cases such as microtransactions and on-chain gaming economies.

Despite this, Solana faces legal challenges that could impact its long-term trajectory. A lawsuit has been expanded to include key executives from Solana Labs and the Solana Foundation for alleged involvement in a Pump.fun scheme that allegedly exploited retail investors. This legal uncertainty could harm investor confidence, particularly if major ecosystem projects are affected.

Another challenge comes from DeFi vulnerabilities. Wormhole, a major cross-chain bridge, was hacked for $320 million in wETH, highlighting potential risks in Solana’s ecosystem. The attack exploited a flaw in the Solana VAA verification system, allowing the attacker to mint wETH without transferring the underlying assets. Wormhole offered a $10 million bounty for the return of the tokens and details of the exploit.

Is Solana a viable investment in 2026 considering tokenized assets and legal risks?

The approval of Solana spot ETFs in late 2025 has introduced traditional investors to the market, potentially driving capital inflows over time. However, the lawsuit involving key Solana ecosystem participants introduces significant uncertainty. While the long-term appeal of Solana’s tokenized capital market is strong, the lawsuit and potential regulatory scrutiny make the chain a riskier investment.

How is Solana being used for real-world applications and digital infrastructure?

Solana’s high throughput and low fees make it an attractive blockchain for industries requiring fast data processing, such as logistics, retail, and finance. In finance, tokenized assets are being developed on Solana, potentially improving settlement times and reducing costs for businesses. The blockchain’s low fees also support microtransactions, which can benefit IoT applications like EV charging and vending machines.

In gaming, Solana enables real-time in-game economies and on-chain rewards, attracting developers who prioritize speed and user experience. These developments suggest that Solana is positioning itself as a foundational layer for next-generation digital infrastructure.

What challenges does Solana face from DeFi vulnerabilities and liquidity fragmentation?

Stablecoin liquidity fragmentation is another challenge for Solana. The integration of Legacy Mesh allows USDT to be 're-domiciled' across chains without relying on synthetic representations, reducing risk and costs. This helps unify liquidity and allows DeFi protocols to consolidate capital.

However, DeFi vulnerabilities persist. The Wormhole hack in 2026, which resulted in a $320 million loss, demonstrates the risks of cross-chain bridges. The attack exploited a flaw in the Solana VAA verification system, allowing the attacker to mint wETH without transferring the underlying assets. The incident highlights the need for stronger security measures in DeFi infrastructure.

Solana’s price has also remained capped below $147 due to technical resistance, despite strong on-chain activity and rising institutional interest, including a Morgan Stanley ETF filing. Large whale movements, such as a $10.87 million withdrawal from Binance after a year of inactivity, suggest long-term holding intentions and reduced exchange-based selling pressure.