Solana's Price Drops 2.15% Amid Major Protocol Upgrade

Solana's latest price was $166.40, down 2.15% in the last 24 hours. The Solana network is undergoing significant changes with the introduction of a new core protocol upgrade called Alpenglow. This upgrade, described as the largest ever change to the Solana core protocol, will introduce new components named Votor and Rotor, replacing the existing TowerBFT proof-of-stake consensus mechanism and historical proof timestamp system. The developers behind this upgrade, Anza, a development studio spun out by Solana Labs, believe that Alpenglow will be a turning point for Solana, marking not only a new consensus protocol but also the biggest change to the Solana core protocol ever. The upgrade aims to enhance the network's performance and scalability, addressing some of the challenges that have been faced by the Solana network in the past.

Despite facing significant competition from other Layer 1 chains, the Solana network has shown signs of optimism with the impending crypto summer. On-chain data indicates that the number of non-zero SOL addresses recently hit a new all-time high. This increase can be attributed to the rising adoption of Solana-based memecoins, which have helped boost the number of non-zero SOL addresses in recent times. According to on-chain data analysis from Glassnode, the number of Solana wallets holding at least 0.1 SOL has reached a new all-time high of 11.16 million. This surge in wallet addresses suggests a growing interest and adoption of the Solana network among users.

In regulatory news, the United States Securities and Exchange Commission (SEC) delayed its decision on VanEck’s proposed Solana ETF on Monday for further review and consultations. This delay comes as the SEC continues to evaluate the regulatory framework for cryptocurrencies and their associated financial products. The decision on the Solana ETF will have significant implications for the broader cryptocurrency market, as it could pave the way for more institutional investment in Solana and other digital assets.

Solana has recorded the highest decentralized exchange (DEX) volume across all blockchains for the fifth straight week. Its total trading volume reached $26.2 billion over the last seven days. This data positions Solana ahead of both Binance Smart Chain (BSC) and Ethereum in this key area. BSC posted $25.5 billion in weekly DEX volume, while Ethereum registered $15.7 billion for the same period. These volume numbers highlight Solana as the most transacted blockchain recently, with Binance Smart Chain following in second place and Ethereum coming in third. Layer-2 solutions Base and Arbitrum also ranked in the top five, posting $8.3 billion and $6.7 billion in weekly volumes, respectively. The continued high number of transactions on Solana points to a steady group of users active in its decentralized finance (DeFi) and non-fungible token (NFT) areas. This ranking also suggests a current shift in on-chain activity, with users moving from older Ethereum-based platforms toward faster networks and scaling layers.

In addition to its DEX volume, Solana also reported a jump in application revenue for the first quarter of 2025. Total revenue climbed to $1.2 billion, marking a 20 percent increase from the previous quarter. These figures come from data compiled by Syndica and published by Messari. The report looked at 39 major protocols on the Solana network. Pump.fun generated $257.3 million during Q1, up 91.7 percent from Q4 2024. That number includes money from its PumpSwap product in March. Phantom, a popular Solana-native wallet, recorded $164.3 million in revenue, a 25.4 percent quarter-over-quarter jump. Other top money-makers were Photon ($122.4M), BullX ($87.3M), Jupiter ($79.8M), and Raydium ($76M). Revenue on Solana applications actually peaked in January 2025, with over $700 million recorded that month. February and March saw lower numbers, but the quarter still showed strong results overall. An “Other” category, which includes smaller platforms, together generated $377.9 million, up 38.5 percent from the quarter before.

Stablecoin usage on Solana also increased significantly during Q1 2025. The total value of stablecoins on the Solana network rose 145 percent, reaching $12.5 billion. This increase in stablecoin usage indicates a growing trust and reliance on the Solana network for stable and secure transactions. The rise in stablecoin value also suggests that users are increasingly using Solana for various financial activities, including trading, lending, and borrowing. The growing adoption of stablecoins on Solana further solidifies its position as a leading blockchain for decentralized finance (DeFi) applications.