Solana birthday: What cryptocurrency has achieved in five years

​Solana has turned five. In such a short time, the project has managed to break into the top ten most popular cryptocurrencies. However, it has long since evolved beyond just a digital asset—it has become a full-fledged ecosystem that has experienced both highs and lows.

The creation of Solana is credited to Ukrainian-American engineer Anatoly Yakovenko, who previously worked at tech companies like Qualcomm and Dropbox. In 2017, he published the White Paper for a new cryptocurrency, introducing the concept of Proof-of-History (PoH)—a time synchronization mechanism that enhances blockchain speed and scalability. Soon after, he partnered with Greg Fitzgerald and Eric Williams to establish Solana Labs.

On March 16, 2020, Solana launched its Genesis block. Since then, the network has processed $410 billion in transactions, the number of validators has surpassed 1,300, and the decentralized exchange (DEX) trading volume within the ecosystem has reached $1 trillion.

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Co-founder of Solana, Raj Gokal, recalled the challenges faced during the project's launch. At that time, the world was under COVID-19 lockdowns, and many crypto projects were struggling to survive. Thus, launching Solana seemed like a long shot.

Despite the difficulties, the project not only survived but also launched numerous popular products. Let’s take a look at Solana’s journey to success.

Listing, Visa, and the Blockchain phone

After its launch, Solana had to wait more than a year before gaining recognition in the crypto industry. A pivotal moment came on June 17, 2021, when the SOL token was listed on Coinbase. This event marked a turning point for the cryptocurrency, with its price more than doubling to $50 within a month.

Overall, 2021 was a bullish year for cryptocurrencies. Thanks to a new market rally, Bitcoin surged past $60,000, pulling the entire market up, including Solana. On November 6, SOL hit an all-time high of $260, a level that remained out of reach for years.

The following two years were dominated by a bear market, deterring many investors and forcing numerous projects to shut down. However, Solana remained resilient, focusing on expanding its ecosystem.

On February 1, 2022, the team introduced Solana Pay, a decentralized open payment protocol supporting both Solana tokens and the USDC stablecoin.

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By November, Solana secured a major partnership with Google Cloud, which became a validator for the blockchain. This collaboration provided Solana developers with access to advanced cloud services, including the Blockchain Node Engine, simplifying node deployment and enhancing network reliability.

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Another major milestone came in April 2023, when the company unveiled the Solana Saga smartphone. This flagship Android device featured built-in blockchain functionalities, allowing users to store and manage digital assets directly from their phones.

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However, the project was not a commercial success—its high price and niche appeal limited its audience. A few months after launch, Solana announced the discontinuation of the Saga due to low demand. Nevertheless, in 2024, the company introduced an updated, more affordable Solana Saga Chapter 2.

The bear market also saw another milestone—Visa’s announcement in September 2023 of a partnership with Worldplay and Nuvei to pilot a stablecoin-based payment system on Solana. Using USDC and Solana’s blockchain, Visa aimed to optimize cross-border transactions. However, these developments had little immediate impact on SOL’s price, and real growth only began in 2024.

A new growth phase, memecoins, and ETF 

Early 2024 saw a game-changing event for crypto: the approval and launch of Bitcoin ETFs in the U.S., making institutional investment in crypto easier than ever. The entire market turned bullish again, but Solana’s surge wasn’t just about Bitcoin’s momentum.

First, a major outage hit Solana’s blockchain on February 6, halting block production. The network was completely down for two hours—an ordeal for users, investors, and developers.

However, just a month later, Solana set a new record—it became the #1 blockchain for stablecoin transactions. According to Artemis, weekly stablecoin transfer volume on Solana reached $365 billion, surpassing Ethereum’s $153 billion, Tron’s $101 billion, and BNB Chain’s $23 billion.

In June 2024, another significant event took place—VanEck filed for a Solana ETF with the U.S. Securities and Exchange Commission (SEC). While its approval status remains uncertain, if greenlit, Solana would become the third cryptocurrency—after Bitcoin and Ethereum—to have a spot ETF.

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A month later, another legal breakthrough occurred—the SEC revised its lawsuit against Binance, initially claiming that several tokens, including Solana (SOL), were unregistered securities. However, in an amended complaint, SOL was removed from this list—a move that could help clarify Solana’s regulatory status and reduce legal risks.

But what truly fueled Solana’s rise was the memecoin craze. In October 2024, SOL skyrocketed past $175 for the first time in two months. The main catalyst? AI-powered memecoins, such as Goatseus Maximus (GOAT). Created by an anonymous developer on Pump.fun, the token reached a market cap of $722 million in less than two weeks. As a result, Solana overtook Ethereum in DEX trading volume.

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In addition to AI memecoins, Pump.fun played a key role in Solana’s adoption. The platform allowed users to create memecoins effortlessly, boosting Solana’s active users to a record 9 million. At the start of 2025, weekly transaction fees on Solana hit an all-time high of 361,000 SOL, fueled by the launch of TRUMP and MELANIA memecoins.

What’s next for Solana?

Over the past five years, Solana has evolved from a promising startup into one of the leading blockchains, challenging Ethereum with its speed and low-cost transactions. Despite facing technical failures, regulatory scrutiny, and market downturns, the project not only survived but thrived.

2024 was the most successful year yet, thanks to AI-memecoins and the Pump.fun platform, which attracted millions of new users and boosted on-chain activity. Solana’s future looks bright, with a potential ETF approval on the horizon, opening doors for institutional investors.

Moreover, Donald Trump’s pro-crypto stance and his administration’s ongoing support for digital assets mean that SOL could still be added to the U.S. national crypto reserve. If that happens, it could provide another major growth catalyst, further solidifying Solana’s place in the global financial system.