Solana News Today: Solana Surges 20% on Network Upgrade as Analysts Warn of Long-Term Risks

Solana (SOL) has surged nearly 20% recently, fueled by a major network upgrade on July 23, 2025, which increased block size by 20% to boost transaction throughput. However, technical analysts warn of structural vulnerabilities that could undermine long-term confidence in the platform, despite its apparent short-term momentum [1]. The upgrade, part of Solana’s Epoch 821, aims to leverage the QUIC networking protocol and proof-of-stake consensus to potentially surpass 60,000 transactions per second (TPS) [1].

Gert van Lagen, a cryptocurrency analyst, has highlighted bearish divergences in Solana’s price action relative to major rivals like Bitcoin, Ethereum, and Cardano. Multi-timeframe breakdowns across key trading pairs (SOL/BTC, SOL/ETH, etc.) reveal persistent weakness, echoing patterns seen before the 2022 LUNA collapse [1]. Van Lagen’s analysis suggests Solana struggles to sustain momentum against competitors, with moving averages pointing to prolonged bearish trends. For example, the SOL/ADA pair has shown repeated rejection at critical trend levels, signaling a lack of conviction in Solana’s recovery [1].

The technical concerns are compounded by historical reliability issues. Despite the latest upgrade, Solana’s network has faced outages during high-demand periods, raising doubts about its capacity to maintain consistent performance [1]. While proponents argue the 20% block size increase could enhance scalability and compete with Ethereum’s post-Pectra upgrades, critics emphasize the risks of prioritizing rapid innovation over infrastructure stability. Community feedback remains divided, with some users skeptical about the upgrade’s long-term impact [1].

Not all market participants share the bearish outlook. Influencer Zyn has positioned Solana’s price movement above $200 as a confirmed breakout, projecting a potential rally to $260 if bullish momentum persists. This perspective underscores the crypto community’s divide between short-term optimism and long-term caution [1]. However, van Lagen’s warnings highlight the danger of overreliance on price surges without addressing fundamental weaknesses.

For investors, the current juncture presents a delicate balance. While the network upgrade and institutional interest could drive Solana’s value higher, structural risks—such as comparative underperformance against top cryptocurrencies and unresolved reliability concerns—pose significant headwinds. Monitoring price action relative to major assets and the success of scalability measures will be critical in assessing Solana’s trajectory.

The interplay between technical indicators and network developments underscores the broader challenge for Solana: maintaining innovation while addressing foundational instability. As the market awaits further validation of its scalability claims, the token’s ability to retain investor confidence will depend on both sustained performance and the tangible benefits of its upgrades.

Source: [1] [https://en.coinotag.com/analyst-suggests-solana-could-face-long-term-weakness-despite-recent-20-surge-and-network-upgrade/](https://en.coinotag.com/analyst-suggests-solana-could-face-long-term-weakness-despite-recent-20-surge-and-network-upgrade/)