The Solana community is actively discussing a proposed network upgrade aimed at enhancing scalability, which could significantly impact SOL's price trajectory in Q2 2025. Despite facing market downturns earlier in the year—mirroring broader cryptocurrency trends—Solana's potential upgrade presents a bullish case for recovery and growth.
Key Proposal: Increasing Block Limits
Central to the upgrade is a Github proposal to raise block limits from 48M Compute Units (CUs) to 60M CUs. This adjustment would:
- Accommodate more transactions per block.
- Improve network speed and efficiency.
- Reinforce Solana’s competitive edge against chains like Ethereum (currently at ~15 TPS vs. Solana’s 4,167 TPS).
Institutional Adoption and Scalability
Solana’s proof-of-history consensus model has already attracted institutional interest, with platforms like Securitize citing its "high throughput, low costs, and scalability" as key reasons for adoption. A successful upgrade could further accelerate this trend, driving demand for SOL.
Technical Analysis: SOL Price Outlook
As of press time, SOL trades at $123**, showing resilience above the **$120 support level. Key indicators suggest a potential reversal:
- Hourly Chart: Consolidation between $123–$126 hints at accumulation by buyers.
- RSI at 45: A move above 50 could confirm bullish momentum, targeting $147** initially, with a long-term goal of **$300 (a 150% gain).
👉 Explore Solana's latest price trends
Risks to Consider
A breakdown below the ascending triangle’s lower trendline might trigger a 50% drop, pushing SOL toward $60. Market sentiment and macroeconomic factors (e.g., regulatory shifts) remain critical watchpoints.
FAQ Section
1. What could drive a 150% SOL price rally in Q2 2025?
Network upgrades, institutional adoption, and heightened demand from scalable blockchain use cases are primary catalysts.
2. How does Solana’s proposed upgrade improve scalability?
By increasing block limits to 60M CUs, Solana can process more transactions per block, boosting throughput.
3. Why is SOL price declining today?
Short-term bearish pressure stems from macroeconomic uncertainties, including geopolitical tensions and crypto market volatility.
Conclusion
The Solana network upgrade represents a pivotal moment for SOL’s price action. While technicals lean bullish, traders should monitor key support levels and broader market trends.