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Layer-1 blockchain Solana is celebrating its fifth anniversary since launching its mainnet in 2020. Over the years, it has emerged as one of the most active blockchain networks by transaction volume and is among the few cryptocurrencies considered for inclusion in a U.S. digital asset reserve.
From Humble Beginnings to Industry Leader
Solana’s origins date back to late 2017, when founder Anatoly Yakovenko introduced the concept of “Proof of History.” However, the network was officially launched in March 2020, amid the global COVID-19 pandemic. Initially backed by venture capital firm Multicoin Capital, Solana quickly gained traction, securing over $20 million in private token sales by mid-2019.
Within 20 months, Solana’s market cap surged to an impressive $77.8 billion during the 2020-2021 bull market, earning its reputation as an “Ethereum killer.”
Challenges and Resilience Amid Market Turmoil
Solana faced a severe downturn in 2022, exacerbated by the collapse of FTX, which held approximately 58 million SOL tokens. The crisis led to a dramatic drop in Solana’s market cap from $77.8 billion to just $3 billion by late 2022. The token price plummeted to $8.30 in December of that year.
Despite these setbacks, Solana staged a remarkable comeback in 2023. By early 2025, its market cap had rebounded to over $140 billion, thanks in part to its dominance in the $100 billion memecoin sector.
Memecoin Mania Drives Adoption
Solana’s resurgence was fueled by the explosive growth of memecoins like Bonk (BONK), Dogwifhat (WIF), and the Trump-affiliated TRUMP token. These assets, along with platforms like Pump.fun, contributed significantly to Solana’s increased DeFi activity, briefly pushing its total value locked (TVL) to $14.2 billion—second only to Ethereum.
Solana also made waves with its foray into hardware. In May 2023, it launched the “Solana Saga” crypto phone, followed by the improved “Seeker” model. Although initially slow in sales, these devices gained traction through strategic airdrops and now boast over 140,000 presales.
In a significant milestone, the Trump administration announced Solana’s inclusion in the newly established Digital Asset Stockpile. This move further cements Solana’s status as a leading cryptocurrency alongside Bitcoin, Ethereum, and XRP.
Also Read: Solana Inflation Overhaul Fails: 74% Turnout, 43.6% Approval in Historic Governance Vote
As Solana enters its next phase, challenges like network outages remain. However, the upcoming Firedancer validator client aims to enhance the network’s resilience. With a growing ecosystem and institutional recognition, Solana’s future looks promising in the ever-evolving blockchain landscape.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
