Solana Network’s Comeback: Is It Finally Ethereum’s Biggest Threat?

Solana’s comeback story is nothing short of remarkable. The Layer-1 decentralized network rose from the ashes caused by 2022’s crypto winter and severe backlashes amid major setbacks to the top once again. This time, the Solana network is making a comeback with new technological upgrades that many experts see as a major ecosystem win for the network and the broader blockchain industry. Can it finally eclipse Ethereum?

For long, Ethereum has been the king of decentralized finance (DeFi), powering everything from protocols to NFTs. With Solana making a resurgence, many believe Ethereum’s biggest threat is finally here to dethrone it. Can the network do that? Is Solana finally living up to the name as Ethereum’s biggest threat? Let’s find out in this blog.

The Journey of the Solana Network: Risen like the Phoenix

Solana (SOL) soared in 2021, thanks to its ultra-fast transaction speed, security, and low fees. At the time, Solana was touted as the “Ethereum killer” because it did everything better. The trifecta of speed, security, and scalability attracted developers and users. 

Fast-forward to 2022, and Solana’s downfall began. First, the biggest bankruptcy in the crypto space happened. FTX, a Bahamas-based cryptocurrency exchange, collapsed due to a spike in withdrawals and the unavailability of liquidity. Solana was a significant backer of the FTX exchange. The FTX collapse shook investor confidence, resulting in SOL’s decline in price and network activity.

It didn’t stop there; the network continually suffered outages and downtime that undermined its performance. Developers and users vented their displeasure at the Solana team for their underwhelming upgrades. This led to a sharp decline in developer and investor activities. As a result, many critics and experts declared Solana “gone.”

However, Solana not only survived the storm but is thriving. Between 2024 and 2025, Solana witnessed exponential user growth and price increases. Solana gained more than 270% in 2024, reaching an all-time high in the process. Its resilience was even applauded by the competing Ethereum co-founder, Vitalik Buterin. Syncracy, in 2024, revealed that Solana had surpassed Ethereum in real economic value and active addresses, despite accounting for only a fraction of Ethereum’s market cap. The Solana Network has grown stronger and is poised for even greater adoption pending the approval of its ETFs. 

What’s Driving Solana’s 2025 Comeback?

Some of the factors driving Solana’s resurgence include:

• Technical Upgrades

First and foremost, Solana has undergone major technical upgrades that have solved the problem of instability, which was one of its biggest criticisms. What changed? They integrated Firedancer, a third-party validator client software, by infrastructure developer Jump Crypto. This software was specifically developed to increase the networking throughput and efficiency. As a result, the frequent downtime that occurred in 2023 was no more. 

Solana is also surging due to its TypeScript and Rust programming models and better developer tools like Solana Stack. This is attracting Decentralized Physical Infrastructure Networks like Helium to build on the Blockchain.

• Launch of a Solana ETF

The second factor driving Solana’s comeback is the expected launch of an ETF. With the approval of a Solana ETF, traditional investors will gain exposure to the digital asset without entirely owning it. This potentially positions SOL for greater adoption and trading through the stock exchange. 

• Memecoins

The memecoin segment is another catalyst for the surging user activity on Solana. Meme tokens, tied to internet memes and pop culture events, have been growing tremendously on the network since 2024, thanks to the launch of Pump.fun. This is a memecoin launchpad that allows token creation with just a few clicks. It is democratizing the process of producing and owning meme tokens, maintaining the wave of cultural relevance. The accessibility to the launchpad has fueled the creation of over 4 million meme tokens since inception. Although most are worthless now, some have gained significantly for traders and even broken into the top 100 coins by market capitalization.

• Growth of dApps

Furthermore, the Solana ecosystem is gaining momentum due to the explosive growth of decentralized applications. The Solana Saga, for example, is the network’s foray into the smartphone world. Talks about launching the phone resurged in late 2023, after a period of silence. The Saga is Solana’s first smartphone that allows users to secure airdrops linked to the soulbound token. This ultimately led to the sell-out of the Saga. However, Solana is building on the momentum to release a second edition, the Seeker, with upgraded software at a lower cost. The phone is set for rollout in August 2025, with the SKR token. 

The development of Solana Pay, a fast, secure, and open payment solution built on the network for real-world transactions, is making the Solana ecosystem vibrant. Add that to leading digital art marketplaces like Exchange Art and Mad Labs, which have turned Solana into an NFT hub due to its robust ecosystem. 

Is the Solana Network Ethereum’s Biggest Threat?

Solana’s comeback is crystal clear and, in comparison to Ethereum, puts the latter on its toes. Messari co-founder Dan McArdle believes Ethereum’s biggest competitor is Solana. 

“And I don’t think it’s just another flash-in-the-pan L1. Solana’s core technical innovations are important and are the reason why Solana’s UX is much better than on the Ethereum L1, and thus why new retail participants are flocking to Solana.”

Solana might have an edge over Ethereum in scalability and Transactions per second (TPS), but the lack of EVM compatibility will hinder developer migration from Ethereum. After all, DeFi was supposed to be interoperable – to exist as one big family. That’s not the case here. 

The lack of L2s also means Solana thrives best as a consumer and retail chain. For example, it’s best for payments, gaming, and consumer apps. Ethereum, on the other hand, is more expansive and can accommodate complex DeFi integrations and modular innovation, thanks to its support for L2s. 

As far as the crypto space is concerned, Solana isn’t trying to compete with Ethereum. Rather, it’s trying to be the fast, scalable chain that will onboard future users. 

Conclusion

Solana didn’t make a comeback- it underwent a rebirth. Once written off has re-emerged stronger and faster. Whether it can overtake Ethereum’s ecosystem is yet to be seen. One thing is evident – Solana will power the future of consumer crypto. It’s here to stay for a long time.