The Solana Foundation has addressed a critical vulnerability that could have potentially allowed malicious actors to mint specific tokens and illicitly withdraw funds from user accounts. Discovered on April 16th, the flaw resided within the zero-knowledge proof system used for Token-22 confidential tokens, Solana’s privacy-focused assets. This vulnerability stemmed from missing algebraic components in the ZK ElGamal proof system, which is integral for verifying private balances.
While no actual exploits were reported, the Solana Foundation moved quickly to deploy necessary patches. The majority of validators on the network updated their software within a swift two-day timeframe following the public disclosure on May 3rd.
The affected programs were Token-2022, which governs token logic, and ZK ElGamal Proof, responsible for the blockchain’s privacy features. Despite the timely response and the assurance that user funds remained secure, the Foundation faced some criticism from the community regarding its initial private communication with validators about the issue. This approach sparked discussions around centralization and the potential for validator collusion.
SOL Price Demonstrates Resilience Amidst Positive Network Growth
Despite a period of consolidation below the $150 mark in the past week, Solana‘s native token, SOL, has exhibited significant strength. The cryptocurrency has recorded a healthy 20% gain on its monthly chart, signaling renewed bullish momentum. Analysts are now eyeing higher price targets, with some predicting a surge towards $200 and beyond.
This positive price action coincides with notable milestones achieved by the Solana blockchain in the first quarter of 2025. The network has reportedly outperformed major competitors like Ethereum and Cardano in terms of revenue generation. Furthermore, the platform has witnessed a surge in meme coin trading activity, particularly on platforms like Pump.fun.
Also Read: Solana Price Warning: Death Cross Nears, Sellers Tighten Grip Below $150 – Analyst
Data from Token Terminal indicates that Pump.fun has generated an impressive $294 million in fees year-to-date, surpassing Ethereum’s $249 million and maintaining a higher weekly fee capture for nine consecutive weeks. This growing activity underscores the increasing adoption and vibrancy of the Solana ecosystem.
Analysts Forecast Potential $200+ Target for SOL
Prominent cryptocurrency analyst CryptoBullet has expressed a bullish outlook for SOL, emphasizing the importance of the token maintaining support above key horizontal levels. The analyst has identified a potential target and rejection zone for Solana in the $190-$230 range in the coming months. This optimistic forecast, coupled with the network’s strong fundamentals and the swift resolution of the recent vulnerability, suggests a positive trajectory for Solana as it continues to mature and attract both developers and users.
$SOL had a great monthly close. It held the Key Horizontal level
— CryptoBullet (@CryptoBullet1) May 4, 2025
As I said, we will spend several months above that level before the inevitable breakdown
Target/Rejection Zone: $190-230 🔨 pic.twitter.com/gpJcOPLHOG
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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