From pandemic origins to US crypto stockpile
Layer-1 blockchain Solana is commemorating its fifth anniversary since the mainnet launch in March 2020. In this relatively short period, Solana has emerged as one of the most active blockchain networks, processing over 408 billion transactions and handling nearly $1 trillion in trading value on decentralized exchanges. This impressive activity has led to discussions about its inclusion in a prospective U.S. digital asset reserve.
The narrative of Solana’s rise is particularly intriguing as it aligns with the onset of the COVID-19 pandemic. While the initial idea for Solana can be traced back to a 2017 white paper by CEO Anatoly Yakovenko, the network officially launched at a time when the world was responding to unprecedented public health measures. The project found significant backing from Multicoin Capital, which helped secure $20 million in private token sales prior to its launch.
In the months that followed, Solana gained traction, even garnering a reputation as an “Ethereum killer.” At the height of the 2020-2021 bull market, its market capitalization soared to $77.8 billion. However, the journey was anything but smooth.
The dramatic downturn of the crypto market in 2022, exacerbated by the collapse of the FTX exchange, saw Solana’s market cap plummet to $3 billion— an astonishing 96% drop from its peak. This collapse was particularly severe due to significant holdings from FTX in Solana tokens, leaving the blockchain vulnerable in the midst of the crisis. Despite falling to lows of $8.30 in late December 2022, a remarkable recovery began in 2023, boosting its market capitalization to over $140 billion by early 2025.
One of the primary catalysts for Solana’s resurgence was the memecoin craze that swept through the crypto landscape between late 2023 and 2024. During this period, several Solana-based memes, such as Bonk and Dogwifhat, achieved multibillion-dollar market valuations. Platforms like Pump.fun, which catered to memecoin enthusiasts, reported revenue exceeding $540 million within a year.
The excitement peaked with the launch of the Official Trump memecoin by Donald Trump’s insiders in January 2024, which momentarily reached a market cap of $14.6 billion before crashing. This meteoric rise and subsequent fall resulted in Solana’s decentralized finance (DeFi) total value locked reaching an impressive $14.2 billion, trailing only behind Ethereum.
Solana has also ventured into the hardware space with the launch of the Solana Saga, its first dedicated crypto phone introduced in May 2023. Initially sluggish sales turned around following a massive airdrop, with over 140,000 presales recorded for the device, which offers a unique wallet integration for cryptocurrency enthusiasts.
However, the network has faced its share of challenges, including multiple outages necessitating restarts when faced with high traffic. Aiming to resolve these issues, the introduction of an independent validator client named Firedancer is anticipated to launch on the Solana mainnet by 2025.
Most notably, Solana’s inclusion in the U.S. Digital Asset Stockpile, confirmed by an executive order from the Trump administration, marks a significant milestone. As the youngest crypto asset earmarked for this reserve, discussions around Solana’s role in the U.S. digital asset landscape are ongoing.
At present, Solana’s market price hovers around $128.17, placing it as the sixth-largest cryptocurrency with a market capitalization of $64.5 billion. Although it remains down 56% from its all-time high, the overall outlook for Solana continues to navigate through broader economic challenges and fluctuating market sentiments.
