Is Solana a Buy, Sell, or Hold in 2026?

Solana (CRYPTO: SOL) has been through a rough stretch. It's down about 68% from its all-time high of $294 (as of May 11), and there's regular selling pressure because the FTX bankruptcy estate needs to liquidate its SOL tokens in regular batches.

But Solana may have turned a corner recently, as it's up 10% over the last week. The positive momentum could be a sign that the broader market is recognizing Solana's strength as a cryptocurrency investment.

Image source: Getty Images.

The network has taken a major step forward

Since its launch, Solana has stood out for its ability to process transactions more efficiently than other blockchains. It processes over 1,000 transactions per second (tps) for well under $0.01 in crypto transaction fees, according to data from Chainspect. That's a stark difference from its biggest competitor, Ethereum (CRYPTO: ETH), which processes about 20 tps for $0.30 in fees.

There used to be one big problem: reliability, or lack thereof. Between 2021 and 2023, outages were frequent. Solana had plenty of speed, but that loses its luster when a network is unreliable.

Solana seems to have solved this problem. It has gone over two years without a major outage, marking its longest stability streak, thanks to network upgrades. The most recent upgrade, Firedancer, is the most exciting yet. It started in December 2025, and in testing, it handled over 1 million tps. Firedancer also improves reliability by separating validator tasks into "tiles," meaning that if there's a bug in one area, it's contained there. The validator can then just restart the tile.

The most active blockchain for decentralized trading

Solana is second to Ethereum in total value locked (TVL) across its decentralized finance (DeFi) protocols. It's a distant second, to be fair. Solana has about $6 billion of TVL compared to Ethereum's $45 billion.

Where Solana wins is in activity. It has the highest volume on its decentralized crypto exchanges -- $2 billion over the most recent 24-hour period at the time of this writing, compared to $1.3 billion for second-place Ethereum. It also has the highest app revenue over the last 24 hours at $3.5 million.

It's not all good news for Solana, given how far behind Ethereum it remains in terms of TVL. Its activity levels are still a sign that Solana is a widely used blockchain network.

The case against Solana

Although there's a lot to like about Solana, there are potential problems. The most serious is the dwindling number of validators. The network has 751 validators, down from a peak of 2,560 in March 2023.

Validator concentration makes a blockchain network more vulnerable to attacks. Ethereum has nearly 900,000 validators, providing a much greater level of security.

Solana also now faces competition from Ethereum Layer-2 (L2) blockchains, such as Arbitrum and Base. L2 blockchains are built on top of Ethereum and designed to improve transaction speeds and reduce fees. They provide the same level of security as Ethereum with the sub-$0.01 fees that used to be one of Solana's biggest advantages.

Should you buy, sell, or hold Solana?

If you're a crypto investor looking for altcoins, this could be a good time to buy Solana. After dropping below $70 in February, Solana has built positive momentum, and the Firedancer rollout makes its network stronger than ever. The SEC also approved spot Solana ETFs in October 2025, which should attract more institutional investors.

To be clear, Solana is risky and highly volatile. But with its speed and the level of activity on its blockchain network, Solana could be one of the most successful cryptocurrencies over the next five years.

Lyle Daly has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum and Solana. The Motley Fool has a disclosure policy.