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Solana rises 1.59% to $169.19 as institutional interest lifts sentiment

by admin May 21, 2025
May 21, 2025

Solana has risen 1.59% to $165.80 in the latest 24-hour trading window, recovering slightly from a 6% drop the day before.

Source: CoinMarketCap

The cryptocurrency continues to fluctuate within a key range of $160 to $180, as investors digest major technical changes and shifting institutional dynamics.

A consensus upgrade, dubbed Alpenglow, has just been introduced by a Solana blockchain infrastructure firm spun out of Solana Labs, Anza.

This protocol-level shift aims to replace the old Tower BFT and Proof of History consensus mechanism with a new dual system—Votor and Rotor.

These changes are intended to improve speed, finality, and reliability, especially as the ecosystem scales.

What Votor and Rotor can change

Alpenglow comprises two core components: Votor, which handles voting transactions and block finalization logic, and Rotor, a data dissemination protocol designed to replace Solana’s proof-of-history timestamping system.

Rotor aims to significantly reduce the time required for nodes to reach consensus on the network state.

According to researchers at Anza, “Alpenglow will shatter both these latency bounds,” with the project targeting true finality within approximately 150 milliseconds — a performance benchmark comparable to traditional internet infrastructure.

The Votor component will allow blocks to finalise in just one voting round if 80% of stakeholders are active, or in two rounds if at least 60% are responsive.

This shift is aimed at improving consensus efficiency across the Solana blockchain.

Meanwhile, Rotor is designed to reduce network latency by simplifying the existing turbine tree structure, resulting in “higher fanout, fewer layers, lower latency,” according to Anza.

These changes are considered essential for scaling the network’s performance without compromising decentralisation or speed.

Institutional push gains traction

Institutional momentum is building behind Solana. Galaxy Digital, led by Michael Novogratz, recently announced a partnership to bring tokenised equities onto the Solana blockchain.

This move could place Solana, which can be stored on a Solana wallet, at the forefront of linking decentralised finance with traditional capital markets.

However, regulatory delays persist. The US Securities and Exchange Commission has not yet approved several Solana spot ETF applications.

While this has dampened short-term optimism, it hasn’t reduced interest among investors.

The broader backdrop remains favourable, especially after the US Senate approved a key vote on the ‘Genius Act,’ a proposed bill to regulate stablecoins.

If enacted, the legislation could provide clarity for crypto markets and enable more institutional involvement.

Price trends and market signals

From a technical standpoint, chart analysts have pointed to a falling wedge pattern forming on Solana’s 4-hour chart.

This is often considered a bullish signal and may indicate the potential for a price rebound.

Still, traders are watching the $180 to $190 resistance range closely, as this has previously capped gains during upswings.

Meanwhile, large-scale SOL transfers from Binance wallets to addresses linked with Wintermute and other exchanges have raised some questions.

Although millions of dollars worth of SOL have changed hands, the token continues to hold key support levels.

The broader market environment is also supportive.

Bitcoin remains resilient above $100,000, and forecasts suggest a potential climb to $150,000 or even $200,000 in 2025.

This could provide a bullish tailwind for Solana and other major altcoins.

The post Solana rises 1.59% to $169.19 as institutional interest lifts sentiment appeared first on Invezz

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