Is investing in Solana a smart decision?
As with other blockchains like Ethereum, the Solana network has a native cryptocurrency called SOL fulfilling key roles for staking.

Solana emerged recently as a next-gen blockchain promising blazing transaction speeds and scalability, but has proven unreliable suffering periodic network outages.

The native SOL token still entered 2023 ranked #10 largest cryptocurrency, but doubts endure on its future.

Origins of Solana

Jumping into the market in 2020 after several years of internal work, Solana was founded by former Qualcomm engineer Anatoly Yakovenko based around a mission of unmatched performance:

  • Leverages "proof of history" mechanism to distribute trust
  • Innovations target sub-second block verification
  • Emphasizes scalability with fast, low cost transactions

After rapid traction through 2021, troubles the next year shook confidence in its stability. But the developer community and war chest still seem supportive.

Native SOL Token Utility

As with other blockchains like Ethereum, the Solana network has a native cryptocurrency called SOL fulfilling key roles:

  • Incentivizes nodes participating in validating transactions
  • Rewards developers building applications on the platform
  • Covers fees levied on users to prevent spamming the network

The token therefore has monetary value tied to the blockchain's continued proliferation. Its fortunes rise and fall accordingly.

Solana Outages Undermine Reliability

Despite impressive headline throughput numbers on Solana's order matching system, real-world usage suffered hiccups raising red flags on its stability:

  • June 2021 outage - Network crashed for 6 hours from resource exhaustion
  • January 2022 failure - Bot activity overwhelmed servers, freezing transactions
  • June 2022 halt - Outage spanned 7 hours hampering dApp usability

While glitches familiarize early technology lifecycles, severity and duration exacerbates worries on specialization tradeoffs made by developers like avoiding Ethereum's modular architecture.

Weighing Future Investment Potential

With SOL, investors face challenging risk-reward analysis even after an 85% plunge from all-time highs:

Upside Arguments

  • Huge 10x price multiplier still to reclaim prior peak
  • Rockstar technical team can harden reliability over time
  • Backing by elite VCs and successor chain adoption

Downside Scenarios

  • Systemic fragility risks further outages and stigma
  • Deep developer disgust if issues persist
  • Regulatory crackdown on inflated token sale

Ultimately teams solve problems or become exceeds. Jury still out which fate awaits Solana. But fragility looms large currently diminishing longer term thesis.


While the Solana blockchain and SOL token offered mouth-watering promise broadcasting blazing speeds supporting dApp development, real-world hiccups led to intermittent network outages halting usability.

Questions now endure on whether architectural decisions sacrificed modularity and security for raw throughput theoreticals unrealized in practice. With vast war chests still supporting developers, potential comebacks can never be dismissed. But critics gained ample airtime highlighting limitations still requiring hard work addressing rather than hype pumping marketing prevalent in earlier years.

Until functionality runs reliably over extended periods without concern, skepticism now rightly meets Solana adoption ambitions. But early backers with higher risk tolerance may still assess off 85% lows offers favorable entry points for speculative exposure respecting collapse potentials ahead. But novice investors baffle avoid the project absent concrete signs of emerging network robustness.