to leave a comment.
▲ Solana (SOL)/AI-generated image ©
Solana (SOL) is gaining attention as a prominent alternative to Ethereum, leveraging its fast processing speed and low fees. However, an analysis suggests that diversified investment is preferable to concentrating on a single asset, considering its history of network outages and the high uncertainty in the cryptocurrency market.
According to the investment media The Motley Fool on July 4 (local time), Solana ranks as the world's 7th largest cryptocurrency with a market capitalization of approximately $44 billion. While its price has fallen by about 74% from its peak recorded in January 2025, it has surged more than 100 times since its launch in 2020. The media evaluated Solana as a blockchain with high growth potential, despite being smaller in scale than Ethereum.
Solana's greatest competitive advantage is its speed. It currently processes 3,641 transactions per second and implements very low fees through its unique 'Proof of History' technology. Based on these characteristics, its adoption is expanding in financial services and payment sectors. The total value locked (TVL) in its decentralized finance (DeFi) ecosystem reached $4.9 billion, making it the second largest after Ethereum, and Shopify introduced Solana-based payment functionality in 2023. Visa, PayPal, and Stripe are also utilizing Solana for stablecoin payments.
However, network stability was still pointed out as an unresolved issue. According to the cryptocurrency development platform Helius, Solana has experienced several network outages and service disruptions in recent years. The media analyzed that this history could be a burden for users who prioritize reliability and stability.
The Motley Fool evaluated that while Solana is clearly a promising blockchain with competitiveness in the financial and payment markets, no one can be certain which project will dominate the market in the long term. This is because it is difficult to predict the speed of technological development, regulatory changes, market adoption levels, and new risk factors. Therefore, it advised that investors looking for an alternative to Ethereum would find a diversified investment strategy across various altcoins more rational than focusing on a single cryptocurrency. It also added that it is advisable not to excessively increase the proportion of cryptocurrency investment within the overall portfolio.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.