Solana News Today: Solana Processes 100K TPS as $19B Evaporates in Crypto Crash

Solana's blockchain withstood a historic $19 billion liquidation event in late October 2025, processing over 100,000 transactions per second (TPS) amid one of the most volatile periods in crypto history. The crisis, triggered by former U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports, sent shockwaves through global markets, wiping out 1.66 million leveraged positions and driving Bitcoin and Ethereum into steep declines . Solana, however, emerged as a rare bright spot, showcasing its scalability and resilience under extreme pressure.

The liquidation cascade began after Trump's tariff threat escalated trade tensions between the U.S. and China, sparking a "risk-off" selloff. Centralized exchanges automatically liquidated altcoin collateral as prices plummeted, creating a self-reinforcing cycle of forced selling . Market analysts attributed the severity of the crash to excessive leverage and thin liquidity in altcoins, which amplified the downturn. By October 11, the total crypto market cap had fallen to $4.05 trillion, with Bitcoin dropping 10% to $107,000 and Ethereum losing over 15% .

Amid the chaos, Solana's network achieved a peak throughput of 100,000 TPS, with its Agave validator client handling six times the usual traffic without performance degradation . This marked a critical stress test for the blockchain, which has long marketed itself as a high-performance alternative to Ethereum. The core development team at Anza confirmed the network's stability, noting that the Agave client processed 60 million compute units per block during the crisis . By comparison, Ethereum's average TPS hovers around 22, while Visa processes 24,000 TPS under normal conditions .

The performance boost came as Solana's price dropped 17.5% to $183, yet its market capitalization remained at $100.4 billion, supported by a circulating supply of 550 million tokens . Analysts highlighted the network's ability to maintain functionality during high-stress scenarios, a feat that could bolster its appeal for institutional and DeFi applications. "This proves Solana can handle real-world demands in decentralized finance and high-frequency trading," said a spokesperson for the Anza team .

Looking ahead, optimism surrounds Solana's prospects as regulatory hurdles ease. The U.S. Securities and Exchange Commission (SEC) has delayed but not derailed approval for three Solana-related ETFs, with Bloomberg analysts estimating a 90% chance of clearance by mid-2025 . Institutional interest is also growing, with firms like Pantera Capital allocating $1.25 billion to Solana-based assets . Meanwhile, the blockchain's DeFi ecosystem has hit a record $12.2 billion in total value locked, driven by innovations in liquid staking and regulatory clarity .

The October liquidation event, while devastating for many traders, underscored Solana's technical strengths. As the network prepares for the Alpenglow protocol upgrade-aimed at reducing block finality to 150 milliseconds-market participants are watching closely for signs of sustained growth . For now, Solana's ability to process 100,000 TPS under duress has positioned it as a key player in the race for blockchain scalability.

Source: [1] Solana Endures Stress Test Amid $19B Market Liquidation (https://coinpaper.com/11532/solana-survives-record-19-b-liquidation-with-100-k-tps-performance)

[2] Solana Surpasses 100,000 TPS During Massive Liquidation Event (https://coinfomania.com/solana-100k-tps-liquidation-october-2025/)

[3] Solana Achieves Historic 100K TPS Milestone, ... (https://cryptonews.com/news/solana-achieves-historic-100k-tps-milestone-developer-claims-blockchain-first/)

[4] Trump Crashes Crypto Markets With 100% Tariff On China (https://beincrypto.com/trump-china-tariff-triggers-200-billion-crypto-crash/)

[5] Trump's 100% China Tariff Triggers $20B Wipeout, 1.6M Crypto ... (https://cryptonews.com/news/trumps-100-china-tariff-triggers-20b-wipeout-1-6m-crypto-traders-liquidated/)

[9] Solana News Today: Solana Targets $300 as ETF Approval Nears ... (https://www.analyticsinsight.net/news/solana-news-today-solana-targets-300-as-etf-approval-nears-in-2025)