SOL Price Forecast 2025: Enhanced On-Chain Engagement and Network Improvements Propel Solana Toward Its Upcoming Bull Run
- Solana (SOL) gains traction in 2025 with 17.2M active addresses and 543M weekly transactions, outperforming Ethereum and BNB Chain. - Network upgrades like Alpenglow (Q1 2026) and Firedancer (Q3 2025) aim to achieve sub-second finality and 1M+ TPS, boosting institutional adoption. - ZK Compression v2 slashes transaction costs by 5,200x, while $118M inflows during October 2025 outflows highlight growing ETF and retail demand. - Rising TVL ($42.4B peak) and Bitcoin Hyper integration position Solana as a sc
Solana (SOL) has distinguished itself in the crypto sector, propelled by vigorous on-chain engagement and significant network advancements. Amidst a turbulent market and evolving investor attitudes, Solana’s exceptional status—evidenced by unprecedented transaction counts, a spike in active users, and innovative protocol improvements—makes it a leading contender for an extended bullish run. This review examines how these elements are aligning to fuel SOL’s next upward movement.
On-Chain Metrics: Building Lasting Strength
Throughout 2025, Solana’s on-chain performance has shown notable durability, even as the broader market faced challenges. Data from Nansen, referenced by COINOTAG News, indicates that
Solana’s decentralized exchanges (DEXs) have also seen impressive growth. In Q3 2025, DEX trading volume reached $29 billion, marking a 21% year-over-year rise, fueled by advancements in DeFi and gaming, as noted in the Coinotag report. The network’s Total Value Locked (TVL) peaked at $42.4 billion in 2025 before adjusting to $10 billion due to wider DeFi market corrections. Despite this pullback, Solana still commands 8% of the DeFi market, underscoring its established presence, as reported in the Coinotag report.
Network Upgrades: Paving the Way for Greater Scalability
Solana’s 2025 development agenda has featured a range of protocol enhancements aimed at boosting scalability, security, and user experience. The Alpenglow upgrade, scheduled for Q1 2026, will introduce Votor and Rotor subsystems to replace the current consensus model, targeting block finality in just 100–150 milliseconds and supporting real-time applications such as high-frequency trading and gaming, as outlined in the Coinotag report. This upgrade is set to appeal to institutional users seeking ultra-fast infrastructure.
Additionally, the Firedancer upgrade—a validator client built in C++ by Jump Crypto—will operate alongside Solana’s Agave client (Frankendancer) in hybrid mode. Firedancer is designed to push transaction throughput beyond 1 million TPS, greatly minimizing systemic risk and strengthening network stability, as highlighted in the Coinotag report. The full mainnet launch is expected by Q3 2025.
Solana is also leveraging zero-knowledge technology to transform its cost dynamics. ZK Compression v2, introduced in Q3 2025, uses zero-knowledge proofs to condense state data, reducing transaction fees by a factor of 5,200 and making large-scale airdrops and NFT launches feasible without overloading the network, as reported in the Coinotag report. These innovations are vital for maintaining developer momentum in DeFi and NFT sectors.
Investor Behavior: Capital Flows and Retail Interest
Solana’s robust on-chain metrics have translated into heightened investor interest. During the crypto downturn in October 2025, Solana drew in $118 million in new investments, defying the broader trend of $1.17 billion in withdrawals from
Market movements also signal increasing optimism. In early November 2025,
Drivers of the Next Bull Market
The interplay between on-chain growth and protocol innovation is creating a reinforcing cycle for Solana’s expansion. Improved scalability draws in developers and users, which in turn boosts transaction activity and TVL. Lower fees and faster processing enhance the user experience, encouraging further adoption. Meanwhile, growing institutional participation—fueled by ETFs and security upgrades—adds both liquidity and trust.
Layer 2 solutions like Bitcoin Hyper ($HYPER) are further strengthening Solana’s ecosystem. By combining ZK-rollups with Solana’s
Conclusion
Solana’s outlook for 2025 highlights its status as a high-performance blockchain resilient to market swings. With a strong lineup of upgrades, increasing on-chain activity, and rising institutional interest, the network is poised for a new bullish chapter. Investors should keep a close watch on the rollout of Alpenglow and Firedancer, as well as ongoing ETF inflows, for signs of continued momentum.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Vivek Ramaswamy’s Strive buys 1,567 Bitcoin valued at $162 million
Crypto Wallet Exodus Acquiring Grateful to Expand Stablecoin Payments in Latin America
Bitcoin Miner Greenidge Settles New York Permit Dispute, Prompting Stock Spike
What Will Happen to Bitcoin and Altcoins if the US Government Shutdown Ends? – XRP Spot ETF Hype Begins