Why Was Solana Chosen for the U.S. Cryptocurrency Strategic Reserve? What Is SOL’s Future Outlook?

TradingKey – In recent times, Solana (SOL) has quickly gained prominence, not solely being included in the U.S. cryptocurrency strategic reserve but additionally difficult Ethereum’s dominance with its distinctive benefits, incomes the title of “Ethereum Killer.” 

This text explores Solana’s technical strengths, use instances, market efficiency, and future traits to supply a complete perceive SOL’s potential and funding alternatives.

What Is Solana (SOL)?

Solana is a high-performance public blockchain platform, with SOL as its native token. Its core mission is to handle scalability points in the blockchain area, providing quick, low-cost transactions and good contract help—areas the place Ethereum faces important challenges.

Solana’s founder, Anatoly Yakovenko, is a Ukrainian-American with a level in pc science from the College of Illinois. A seasoned entrepreneur with a powerful technical background, Yakovenko has labored at Apple, Microsoft, Qualcomm, Dropbox, and Mesosphere. Recognizing the scalability and effectivity limitations of Bitcoin and Ethereum, he based Solana in 2020 to beat these challenges.

Variations Between Solana, Ethereum, and Bitcoin, Supply: TradingKey.

What Are Solana’s Technical Benefits?

Solana is usually referred to “Ethereum Killer” on account of its technical strengths, positioning it as a high-performance, low-cost blockchain platform able to supporting high-throughput transactions and sophisticated decentralized functions (DApps).

The next are Solana’s most notable technical benefits:

What Are Solana’s Use Instances?

Like Ethereum, Solana helps a variety of software, together with finance, social networks, provide chain administration, public welfare, and extra. 

In truth, every time a preferred software emerges on Ethereum, builders usually replicate it on the Solana community, resulting in a excessive diploma of similarity between the two, as illustrated under:

How Has Solana Carried out in the Market?

Regardless of being lower than 5 years previous, Solana (SOL) has established itself as a big participant in the crypto area, significantly in market capitalization, DeFi whole worth locked (TVL), and on-chain exercise.

As of March 13, 2025, SOL’s capitalization market stands at $63 billion, rating sixth amongst all cryptocurrencies, behind BTC, ETH, USDT, XRP, and BNB. Because of this, SOL is listed on main exchanges equivalent to Binance and Coinbase, persistently preserve in excessive buying and selling volumes.

High 10 Cryptocurrencies by Market Cap, Supply: CoinMarketCap.

Solana’s DeFi TVL exceeds $6.7 billion, accounting for 7.6% of the whole and rating second amongst all public blockchains, trailing solely Ethereum. Moreover, whereas Ethereum stays the largest good contract platform, Solana surpasses it in on-chain transaction quantity, recording 382.1 billion transactions in comparison with Ethereum’s 2.1 billion.

DeFi TVL Share Throughout Public Blockchains, Supply: DefiLlama.

What Is Solana’s Future Outlook?

Solana’s strengths—blazing-fast transaction speeds, low charges, and a sturdy ecosystem—type the basis for its future development. These benefits haven’t solely attracted buyers but additionally gained recognition from the U.S. authorities. On March 2, 2025, President Trump introduced the institution of a cryptocurrency strategic reserve on Reality Social, together with BTC, ETH, SOL, ADA, and XRP.

What does SOL’s inclusion in the U.S. strategic reserve imply? The U.S. authorities will accumulate and maintain SOL long-term, successfully lowering its circulating provide and probably driving its worth larger. Whether or not by means of confiscation, donations, or taxpayer funds, this transfer is predicted to have a long-term constructive impression.use of fiscal funds might additional appeal to further funding.

One other potential catalyst for Solana is the approval of a SOL spot ETF, which might enable SOL to enter the U.S. inventory market and appeal to extra institutional and retail buyers. Since Trump’s re-election in January 2025, efforts to enhance crypto rules and place the U.S. as a world crypto hub have led to a number of functions for SOL and different altcoin spot ETFs. The SEC has confirmed receipt of those functions, with excessive market expectations for approval this yr.

Conclusion

As a rising star, Solana has rapidly established itself in the crypto market with its technical benefits and robust market efficiency, incomes the title of “Ethereum Killer.” Now, as a part of the U.S. cryptocurrency strategic reserve, SOL’s demand is prone to improve additional.