After being behind Bitcoin (BTC) in 2024, Solana (Sol) is a favorite of the crypto market for 2025 – and here are the reasons

Solana was officially launched in 2020 as a project to compete with Ethereum in the creation of ecosystems within the universe of cryptocurrencies. (Image: Crypto Times)

THE cryptocurrency Solana (Sol) It is one of the first layer platforms (Layer 1 or L1) more promising for 2025, According to analysts in this sector. Even though the Bitcoin (BTC) and the Ethereum (eth) be the most common bets, the fifth largest virtual currency in the world is not behind recommendation.

But after rising 85% in 2024 – falling short of Bitcoin’s performances, which jumped 121%, for example – which makes this network so interesting to 2025?

A fourth quarter report of 2024 (4T24) MessariAnalysis and Research Company of blockchaingives clues of what was the end of last year and why Solana started 2025 on the right foot.

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Memecoins fever hits solana (sun)

Returning a few steps, Solana was officially launched in 2020 as a project to compete with Ethereum in creating ecosystems within the cryptocurrency universe.

In short, they are networks (blockchains) created to support other projects, such as decentralized applications (DAPPS), decentralized finances (Defi), intelligent contracts (Smart Contracts), etc.

Thus, the sun network was created to be faster and cheaper than the blockchain From ETH, which attracted the Pump.Fun platform to its ecosystem.

THE Pump.fun It is a marketplace that allows users to create and distribute their own tokens, but has been used mostly to create memecoinsthe cryptocurrencies of internet jokes.

In numbers, Pump.Fun users launched over 4.8 million memecoinscontributing to the “proliferation of altcoins”, generating revenue equivalent to US $ 380 million for the platform alone.

As a result, the “GDP” of the network (called Chain GDP) With applications revenues on Solana’s network, 213% grew in the fourth quarter, from $ 268 million to $ 840 million. November was the most prominent month, with a revenue of $ 367 million.

And it wasn’t just with memes

Investors may not feel very comfortable putting their resources on a network that grew up with the proliferation of “play coins”, so Messari also separated a part just to talk about more serious projects within Solana.

Protocols of Defi had a 64% increase in 4T24, reaching a value stored in decentralized finance protocols (Total Value Locked or TVL) of US $ 8.6 billion.

This growth was driven by loan platforms (lending and staking) and decentralized exchanges (Dex), which reached an average daily volume of US $ 3.3 billion – a 150% growth in the quarter.

In short, Solana has become the main technology platform within the cryptocurrency universe, covering a wide range of segments and with a capacity of Ethereum, its main competing network.

Solana ETF can unlock prices

Finally, the “next border” of the traditional market is the launch of the first index fund (ETFin the acronym) in sight (spot) Solana in the United States. Last year, they were released ETFS spot From Bitcoin and Ethereum, which cheered the investors.

The release of BTC funds was one of the reasons for the jump of over 120% of prices in 2024.

This is because, to offer ETFs in sight, the manager needs to have the currency in cash, which reduces retail supply and, consequently, prices tend to rise with a similar offer.

Thus, there is an expectation that the Sun ETF can help unlock prices for this year. However, there is not yet a specific date for the product to be launched on the market.

It is also worth remembering that the cryptocurrency market is highly volatile and sensitive to the macroeconomic scenario and any changes can affect prices abruptly. Therefore, analysts recommend maintaining a responsible portion of their investments in digital assets.

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