Solana, the high-speed, open-source blockchain, has taken a significant step to enhance its scalability by increasing its block capacity by 20%. This upgrade signals a stronger underlying infrastructure and lays the groundwork for future growth. However, despite this notable technical advancement, the price of Solana (SOL) has experienced a nearly 10% drop, as traders appear to be booking profits.
Solana's Technical Leap: 60 Million Compute Units
The Solana Foundation has confirmed the successful increase of its block limit from 50 million to 60 million Compute Units (CU). This vital upgrade was implemented through the SIMD-0256 proposal, a community-supported initiative led by validator Andrew Fitzgerald.
This boost in network throughput is designed to enable Solana to process a greater number of transactions per block. This is particularly beneficial for developers building high-traffic applications, especially within the Decentralized Finance (DeFi) and gaming sectors. With the potential for fewer delays and lower transaction fees, Solana further solidifies its position as a strong competitor to Ethereum. The ambition doesn't stop here, as there is growing momentum within the Solana community to further scale block capacity to 100 million CU by the end of the year, provided network performance remains stable.
MoonPay Introduces Liquid Staking for SOL
Adding to the network's growing utility, MoonPay has recently rolled out a liquid staking feature for SOL holders. This new offering allows users to stake their SOL and earn an attractive yield of 8.49%. In return, stakers receive a special token called mpSOL, which represents their staked SOL and accrued rewards. This innovative token provides both earning potential and flexibility, as it can be traded or utilized within other DeFi protocols while the underlying SOL remains staked.
SOL Price Volatility: A Test of Market Sentiment
Despite these fundamental improvements and expanding ecosystem features, SOL's price today saw a significant 10% decline, trading around $184. Analysts caution that this current downturn is likely a result of profit-taking from recent gains and could lead to further selling pressure. Some market observers suggest that SOL might dip towards the $162 level if the selling trend continues. A breach below this support could cause concern among bullish investors, while a rebound and sustained trading above $190 would likely alleviate immediate fears.
However, even with this price dip, institutional interest in Solana remains robust. A Solana staking ETF recently surpassed $100 million in volume, signaling strong demand from larger investors. On-chain activity on the Solana network also remains strong, indicating continued utility and user engagement. Should SOL manage to break above the $200 mark again, traders are reportedly eyeing $220 as the next potential target.
July 2025, Cryptoniteuae