Solana has reached a significant milestone, celebrating its five-year anniversary while also making strides in institutional adoption through the launch of CME Group’s Solana futures. As the blockchain continues to evolve, its network activity has seen fluctuations, with shifting trends in meme coin trading and growing institutional interest in regulated derivatives. The introduction of Solana futures follows the path set by Bitcoin and Ethereum, potentially paving the way for a SOL ETF as asset managers increasingly seek exposure to the cryptocurrency. Meanwhile, major industry players like FalconX and StoneX are facilitating institutional access to Solana through the first-ever CME Solana futures block trade.
Solana Celebrates Five Years: A Look at Its Journey and Future Prospects
Solana (SOL), the blockchain known for its speed and scalability, marked its five-year anniversary on Sunday, a major milestone for the network that has grown to become the sixth-largest cryptocurrency by market capitalization. Despite recent fluctuations in network activity, Solana continues to position itself as a leading player in the crypto space, with significant developments on the horizon.
"Happy Solana 0 block day to all those who celebrate," wrote Anatoly Yakovenko, Solana’s co-founder, in a post on X. Several key projects that originated on the Solana blockchain also joined in the celebrations, including Phantom Wallet and the viral meme coin launchpad Pump.fun.
Since its launch, Solana has been recognized for its high-speed transactions and low fees, making it a favored blockchain for DeFi projects, NFTs, and meme coins. However, the past five years have not been without challenges, from network outages to regulatory uncertainty and the collapse of FTX, one of its biggest backers.
The FTX collapse in November 2022 sent SOL’s price plummeting below $10, shaking investor confidence. However, Solana's resilience was evident, as the network recovered to its 2022 peak price levels before settling at around $127 today. Solana co-founder Raj Gokal previously described this period as a "crucible moment" for the blockchain, one that tested its durability and commitment to decentralization.
Despite celebrating its anniversary, Solana has seen a decline in active users in recent months. The number of active addresses on the network has been dropping since November 2023, and March is expected to record even fewer active users than February.
This decline is closely tied to the waning popularity of Pump.fun, a meme coin launchpad that became one of the fastest-growing crypto startups in history. Launched in May 2024, Pump.fun achieved an astonishing $100 million in cumulative revenue in just 217 days. However, recent meme coin scandals, including a political controversy involving the President of Argentina, have caused investor sentiment to shift.
As a result, the percentage of tokens "graduating" from Pump.fun to Solana’s decentralized exchange Raydium dropped to just 0.66% on Saturday, the lowest level since the platform’s early days. This metric serves as a barometer for meme coin trading enthusiasm, and its decline suggests that speculative interest in the sector has cooled off.
The Firedancer Upgrade: A Game-Changer for Solana
While network activity may be slowing down, Solana's development team is pushing forward with major upgrades aimed at solidifying the blockchain’s long-term scalability. One of the most anticipated updates is the launch of Jump Crypto’s Firedancer, an alternative high-performance validator client that is expected to significantly boost Solana’s speed and resilience.
A prototype version of the software, Frankendancer, was launched in September 2023, providing a preview of the benefits that Firedancer could bring. The full rollout of Firedancer is expected in 2025, with key figures in the Solana community—such as Helius co-founder Mert Mumtaz—predicting a launch by the end of Q2.
Firedancer will help Solana move closer to its ambitious goal of processing 1 million transactions per second (TPS), further cementing its reputation as one of the fastest blockchains in the industry. By diversifying its validator clients, Solana also aims to reduce its risk of network outages, a problem that has plagued the blockchain in the past.
Another major development that could drive demand for Solana is the potential approval of Solana-based ETFs. Several asset management firms have filed applications for ETFs that include SOL, and analysts have identified Solana as one of the most likely cryptocurrencies to receive approval, alongside Litecoin (LTC), Dogecoin (DOGE), and XRP.
An ETF approval would be a major milestone for Solana, making it more accessible to institutional investors and potentially leading to a surge in demand. With Ethereum ETFs already gaining traction, Solana’s inclusion in a fund could position it as the next major institutional-friendly crypto asset.
Despite recent setbacks in network activity, Solana’s long-term trajectory remains strong. The blockchain has demonstrated resilience in the face of adversity, bouncing back from the FTX collapse and continuing to develop its infrastructure with the Firedancer upgrade.
If network adoption stabilizes, and ETF approvals come through, Solana could be positioned for another major price breakout in 2025. However, the meme coin sector’s decline and ongoing regulatory concerns could continue to weigh on short-term sentiment.
FalconX Executes First Block Trade for CME Group’s Solana Futures Ahead of Market Launch
In related news, digital asset prime broker FalconX has successfully executed the first-ever block trade for CME Group's Solana futures, marking a significant milestone in the regulated trading of SOL derivatives. The trade, conducted with StoneX as a counterparty, came just a day before the official launch of CME Group’s Solana futures contracts, set for March 17.
The move is part of FalconX’s broader strategy to enhance institutional participation in Solana’s growing futures market, according to Josh Barkhordar, head of US sales at the firm.
CME Group, one of the world's leading derivatives exchanges, introduced Solana futures contracts in late February in response to rising institutional demand. The contracts are structured similarly to Bitcoin and Ethereum futures, which historically served as precursors to ETF approvals by the US Securities and Exchange Commission (SEC).
The new Solana futures contracts come in two sizes:
Standard contracts: Representing 500 SOL each
Micro contracts: Representing 25 SOL each
Both are cash-settled, using the CME CF Solana-Dollar Reference Rate, calculated daily at 4:00 p.m. London time to provide a standardized benchmark for SOL’s US dollar price.
With major institutions seeking regulated exposure to Solana, industry experts see this launch as a significant step toward a potential SOL ETF.
Following the CME Group's launch of Solana futures, several asset management firms have submitted applications to the SEC for spot Solana ETFs. Among the notable applicants:
Franklin Templeton (managing over $1.5 trillion in assets) filed for a SOL ETF in late February 2025.
Grayscale, 21Shares, Bitwise, VanEck, and Canary Capital have also entered the race, hoping to bring Solana-based investment products to institutional investors.
The move follows the regulatory pattern set by Bitcoin and Ethereum, where futures trading preceded the eventual SEC approval of spot ETFs. Analysts suggest Solana's ETF approval could be a reality in 2025, given the growing institutional interest and the SEC's evolving stance on crypto-based investment products.
As a key liquidity provider for CME Group’s crypto derivatives, FalconX has been aggressively expanding its presence in institutional markets. The firm has reported executing over $1.5 trillion in trading volume, covering 400+ tokens for around 600 institutional clients.
Recent strategic acquisitions further bolster its footprint:
In January 2025, FalconX acquired Arbelos Markets, a derivatives platform specializing in institutional-grade crypto options and futures trading.
In February 2024, FalconX partnered with TP ICAP’s Fusion Digital Assets, strengthening its liquidity and data solutions offerings.
These moves reinforce FalconX’s role as a leading prime broker for institutions looking to trade regulated digital asset products.
The launch of Solana futures comes amid a strong surge in demand for CME’s crypto derivatives offerings. The exchange has reported:
202,000 average daily contracts traded in early 2025, marking a 73% increase year-over-year.
243,600 average open interest contracts, up 55% year-over-year.
Over 11,300 unique accounts actively trading crypto derivatives on the platform.
Solana Derivatives Trading Booms Amid Market Pullback
On centralized crypto exchanges, Solana futures have also experienced a significant increase in trading activity. Data from Coinglass shows:
Solana derivatives volume surged 66% to $7.24 billion, reflecting bullish sentiment.
Long/short ratios remain above 2, indicating a bias toward long positions despite recent liquidations.
$12.29 million in 24-hour liquidations suggest high volatility, as traders navigate Solana’s price fluctuations.
