Solana News Today: Solana boosts block size by 20% to enhance throughput 90-day price gain hits 25.74%

Solana has officially increased its block size by 20%, raising the limit from 50 million to 60 million Compute Units (CUs) to enhance transaction throughput and network efficiency. The upgrade, driven by community validators through the SIMD-0256 proposal, was spearheaded by Andrew Fitzgerald and the Solana Validator Community. This adjustment aims to reduce transaction latency and congestion while supporting high-frequency decentralized applications (dApps) and decentralized finance (DeFi) protocols. The move aligns with Solana’s broader roadmap to optimize performance while maintaining decentralization and security. Community forums and validator circles have responded positively, emphasizing the initiative’s role in addressing scalability challenges and sustaining growth [1].

The block size increase has been hailed as a pivotal step in Solana’s scalability journey. By expanding the computational resources allocated to each block, Solana can process more transactions simultaneously, particularly during peak demand. Compute Units, which measure the computational effort required to execute transactions, are a critical metric for network capacity. Analysts note that this enhancement supports Solana’s ambition to compete with Ethereum by offering faster, lower-cost transactions. Coincu industry experts highlight the upgrade as a strategic response to regulatory scrutiny and market demands for efficient blockchain solutions, positioning Solana to balance innovation with compliance [2].

Market sentiment reflects confidence in the upgrade’s impact. As of July 24, 2025, Solana’s token price trades at approximately $190.85, with a market capitalization exceeding $102 billion. While 24-hour trading volumes have dipped by 12.80%, the token has appreciated by 25.74% over the past 90 days, a trend attributed to ongoing scalability improvements and rising institutional adoption. MLQ.ai reports that Solana’s price surged past $200 in July 2025, driven by the launch of Solana-based ETFs and growing institutional interest. These developments suggest that the block size increase could further solidify Solana’s position as a high-performance alternative to Ethereum’s energy-intensive model [2].

The upgrade also underscores the community’s active role in governance. Unlike top-down decisions, this initiative was validator-led, reflecting a collaborative approach to network upgrades. CoinGlass notes that Solana’s April 2025 advancements in block construction and transaction sequencing laid the groundwork for this enhancement. By refining these processes, the network aims to maintain its throughput edge while attracting developers and users seeking cost-effective solutions. The positive reaction from validators and developers signals trust in Solana’s ability to balance scalability with security, a challenge many layer-1 blockchains face [1].

Critics caution that larger block sizes may introduce risks, such as increased hardware requirements for validators or centralization pressures. However, the community’s enthusiasm appears to outweigh these concerns for now. The Solana Foundation has not yet commented on mitigation strategies, but the upgrade’s implementation is expected to align with broader industry trends prioritizing scalability without compromising decentralization. As Ethereum navigates its own upgrade roadmap, including the Shanghai hard fork, Solana’s focus on throughput improvements positions it as a key player in next-generation blockchain infrastructure [2].

Sources: [1] [CoinGlass: Solana Briefly Surpasses Ethereum in Total Value Locked](https://www.coinglass.com/newsflash) [2] [MLQ.ai: Solana Surges Past $200 on Institutional Adoption and ETF Momentum](https://mlq.ai/news/)