TradeCityPro | Deep Search: In-Depth Of Solana👋 Welcome to TradeCity Pro! In this analysis, I will thoroughly review the SOL project, one of the largest crypto projects with a market cap of $73 billion, ranking it 6th among cryptocurrencies.
🔍What is Solana?
🔹Solana is a high-performance, permissionless blockchain platform launched in 2020 by Solana Labs (founded in 2018 by Anatoly Yakovenko and Raj Gokal).
Solana is a high-performance Layer-1 blockchain designed for speed, scalability, and low costs. Launched in 2020 by Solana Labs, it processes up to 65,000 transactions per second (TPS) with sub-second finality and low fees (~$0.0002 per transaction). Unlike Ethereum, which relies on Layer-2 solutions, Solana achieves scalability on Layer-1 using novel technologies like Proof of History (PoH). It is optimized for DeFi, NFTs, gaming, and payments, positioning itself as a fast, cost-efficient alternative to Ethereum.
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🔹History & Background
olana’s development began in 2018, when Anatoly Yakovenko (a former Qualcomm engineer) published a whitepaper introducing Proof of History (PoH) as a new approach to timekeeping in distributed systems. The project attracted venture funding; in 2019 Solana raised $20 million in a Series A led by Multicoin Capital.
After several testnet iterations (nicknamed Tour de Sol, etc.), Solana’s mainnet beta officially went live in March 2020. The Solana Foundation, a Swiss non-profit, was also established in 2019 to steward ecosystem development.
Solana nodes take full advantage of multicore CPUs, GPUs, and high-bandwidth networks, processing transactions in parallel and pipeline fashion. The network’s 400–600 millisecond block times and capacity for multithreaded execution are a stark contrast to the single-threaded EVM model
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🔹How Does Solana Work?
Solana’s speed and efficiency come from eight core innovations:
1) Proof of History (PoH): A cryptographic clock that timestamps transactions before consensus, reducing latency.
2) Tower BFT Consensus: A Proof-of-Stake (PoS) mechanism that leverages PoH to speed up block finalization.
3) Turbine: A block propagation system that breaks data into smaller packets for faster distribution.
4) Gulf Stream: A mempool-less forwarding system that pre-assigns transactions to upcoming validators.
5) Sealevel: A parallel smart contract execution engine, unlike Ethereum’s single-threaded execution.
6) Pipelining & Cloudbreak: A transaction processing unit and scalable storage for high throughput.
7) Archivers: A distributed storage system for historical blockchain data.
Together, these technologies enable high throughput and low fees while maintaining decentralization.
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🔹 Solana’s Consensus Mechanism
Solana combines Proof-of-History (PoH) and Proof-of-Stake (PoS), with Tower BFT handling validator voting.
- PoH timestamps transactions, eliminating the need for validators to agree on time.
-PoS selects validators based on staked SOL, securing the network.
-Tower BFT speeds up consensus by locking validator votes, reducing fork probabilities.
-Finality is achieved within seconds, making Solana one of the fastest blockchains.
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🔹SOL Tokenomics & Vesting
Initial supply: 500M SOL at launch (2020).
Distribution: 39% community, 25% private investors, 13% team and 10% foundation.
Inflationary model: Started at 8% annual inflation, decreasing 15% yearly until reaching 1.5% final inflation.
Token burn: 50% of transaction fees are burned, reducing supply growth.
Vesting: Early investor and team tokens had a 4-year vesting period, most fully unlocked by 2023.
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🔹Some of wallets Supporting Solana
- Phantom
-Solflare
-Trust Wallet
- Atomic Wallet
- Exodus:
-Ledger Nano S/X
-Backpack
-Glow, Torus
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🔹Platforms for Staking SOL
BlazeStake
marinade.finance
Jito
Lido
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🔹Liquidity Pool Platforms
Raydium
Orca
Jupiter
Meteora
Saber
Pancakeswap
Lifinity
Saros Finance
Drift Protocol
Aldrin
Crema Finance
🔹Solana’s 2025 Roadmap and DeFi Opportunities
A key focus in 2025 is Firedancer: a new Solana validator client being developed by Jump Crypto. Firedancer aims to drastically boost Solana’s throughput and stability – it has demonstrated a theoretical capacity of over 1 million transactions per second in tests. As of early 2025, the Solana team is actively testing Frankendancer (an early Firedancer version) on testnets, pushing for a supermajority of validators to trial it. This upgrade, once fully deployed, is expected to give Solana a significant edge in scalability and help avoid the network congestion issues seen in the past.
New Token Standard (Token-22): Solana’s roadmap also introduces Token-22, an enhanced token standard designed for more functionality in payments and digital assets. Token-22 will support built-in features like automatic royalties and richer ownership controls, which is especially useful for NFTs and gaming assets on Solana. This upgrade will enable developers to create more versatile dApps – for example, NFTs with enforced royalty payments or tokens with conditional transfer rules – improving the user experience within Solana’s ecosystem
Scaling Techniques (Sharding and Parallelization): Even though Solana already handles about 50k TPS, the core team is exploring sharding and other parallelization techniques to stay ahead of future demand
Security and Stability Enhancements: After a few high-profile outages in earlier years, Solana’s developers have made network robustness a top priority. The 2025 plan includes more rigorous third-party audits and battle-testing of the network under heavy load. y diversifying its validator client software (e.g. introducing Firedancer) and adding safeguards, Solana aims to prevent single points of failure. New cryptographic techniques and quality-of-service improvements are being rolled out to harden the network against both bugs and malicious attacks
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🔹Popular Projects on Solana
DeFi: At its peak, SEED_TVCODER77_ETHBTCDATA:10B + TVL, now recovering post-FTX collapse.
NFTs: Second-largest NFT ecosystem after Ethereum, driven by low fees.
Gaming: Web3 gaming hub with Star Atlas, Genopets, and move-to-earn projects.
DePIN (Decentralized Physical Infrastructure): Helium’s migration brought millions of new transactions to Solana.
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🔹CertiK Skynet Score: 91.67
🔹Fundraising: $359.55 M
🔹Some of Solana Investors:
Polychain Capital
CMS Holding
a16z
Distributed Global Crypto Fund
RockawayX
Multicoin Capital
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🔹Seed and Private Sales:
Before its public launch, Solana raised capital through several funding rounds. In 2018, a seed round sold SOL tokens at about $0.04 per token, raising approximately $3.17 million.
This was followed by private investment rounds in 2019 where tokens were priced higher roughly $0.20 to $0.25 per SOL, bringing in additional funding (over $12 million in the first private round and $5–6 million in a second round)
Solana’s public token sale occurred in March 2020 on the CoinList platform, just prior to the network’s launch. 8 million SOL (about 1.6% of the initial 500M supply) were sold in this auction-style sale at a price of $0.22 per SOL.
🔹Solana's TVL and revenue:
First, let's examine its Total Value Locked (TVL). Overall, since early November 2023, we have witnessed an upward trend with strong momentum, reflecting growing attention and trust in this ecosystem. Specifically, the amount of locked Solana has increased from 9 million SOL on November 11 to nearly 50 million SOL (March 2, 2025). However, despite the rise in TVL, the network's revenue has been on a downward trend since January 2025, dropping from 70.5 thousand SOL to 2 thousand SOL, a decrease of approximately 97.16%.
🔹Solana On-Chain Analytics Overview
Whale Activity & Large Transactions:The number of whale addresses (holding ≥10,000 SOL) peaked in January 2025 but has since slightly declined, suggesting that some large holders may have reduced their positions. On February 24, a significant whale transaction involving 846,613 SOL ($127M) sparked speculation of a potential sell-off. Meanwhile, other whales appear to be accumulating SOL, with Binance withdrawals totaling 95,600 SOL on February 28, a portion of which was moved to staking, indicating confidence in the network's long-term value.
Active and New Addresswork Expansion:Despite robust growth in total addresses, daily active usage on Solana has recently tapered off. By late February 2025, daily active addresses dropped to approximately 3.5 million, marking a three-month low for the network. However, Solana continues to see strong adoption, adding over 5 million new addresses per day, even amidst market volatility. While the total address count grows, the decline in daily active addresses to 3.5 million reflects reduced user engagement. Transaction volume has also fallen to $1.5 billion, a four-month low, and stablecoin transfer volume has plummeted from $394 billion to $7.1 billion, signaling a significant slowdown in network activity.
👀 Now that we've reviewed the project, let's move on to the chart to also technically analyze this coin
🗓 Weekly Time Frame
As you can see in the weekly timeframe, after breaking the $27.55 level, SOL initiated a strong uptrend and managed to reach its previous ATH at $255.98. Currently, a price box has formed ranging from $126.40 to $255.98, where it has been oscillating for about a year.
⭐ The floor of the box aligns with the 0.236 Fibonacci level, creating a PRZ (Potential Reversal Zone). If the box is breached downward, SOL could begin its corrective wave targeting the significant Fibonacci levels of 0.382, 0.5, and 0.618. A pullback to the SMA99 could also be a plausible scenario.
⚡️ A divergence trigger in the RSI has activated with the break below 50, indicating a potential trend change to bearish, increasing the likelihood of breaking below $126.40.
🔼 If the price finds support at $126.40, there's a high possibility it could retest the upper boundary at $255.98, especially if Bitcoin stabilizes and forms a base.
🗓 Daily Time Frame
In the daily timeframe, we can observe more detailed price movements. After being rejected at the $260.88 area, SOL started its downward trajectory, breaking below $180.63, pulling back to this level, and continuing its decline.
🔍 The critical support now stands at $126.01, where the price has touched and initially reacted to this level. A break below this support could lead to further declines in the chart. Important areas in the daily timeframe are $99.81 and $82.39.
✅ The RSI is near a crucial area, close to entering the Oversell zone. Entry into this zone could heighten the probability of a bearish scenario and the breach of $126.01.
🧩 If the price rebounds from this support, as mentioned in the weekly analysis, we could witness a move up to the box ceiling. However, for now, any buying or long positions should be held off until the price forms a new structure and we can identify clear long and short triggers.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
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