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Solana Experiences Sharp Decline: Recommended Actions for Investors

Solana Experiences Sharp Decline: Recommended Actions for Investors

Bitget-RWA2025/11/26 00:40
By:Bitget-RWA

- Solana (SOL) faces 30% price drop and $156M ETF outflows in Nov 2025, contrasting XRP's $89M inflows amid market risk aversion. - Network instability from outages and validator issues undermines Solana's appeal, prompting upgrades like Firedancer and Alpenglow to boost reliability. - Investors debate whether the downturn signals a buying opportunity or a red flag, with long-term potential offset by unresolved technical fragility and uncertain upgrade timelines.

In November 2025, (SOL) experienced a significant drop in investor confidence, with its price falling by 30% and ETF outflows reaching $156 million in just one week, during the same timeframe. This split highlights a major shift in market sentiment, influenced by Solana's recent technical setbacks and a general move toward caution in the crypto industry. Investors are now left to decide if this decline signals a potential entry point or a warning sign for long-term holdings.

Technical Setbacks and Network Instability

Solana's dependability has come under fire due to repeated network outages and failed transactions. One notable case involved MegaETH, where a series of technical missteps—including an improperly set up KYC system and the premature execution of a multisig transaction—forced the platform to halt deposits and abandon its planned $1 billion expansion

. These incidents expose deep-rooted weaknesses in Solana’s infrastructure, especially concerning validator efficiency and transaction rate controls. and unchecked transaction surges as the main causes of these outages, which have shaken trust in the network’s reliability.

The performance of validators, which is essential for blockchain stability, has also been inconsistent. Although the exact length of outages is not specified,

in handling large transaction volumes and coordinating validators have increased the perceived risks. This instability has made Solana less appealing to institutional investors who require robust, predictable infrastructure.

Developer Initiatives and Forthcoming Improvements

To address these issues, Solana’s development team has made network stability a top priority, rolling out a series of major upgrades. The Firedancer initiative, a validator client built in C/C++ by Jump Crypto, is designed to reduce dependency on Solana’s Rust-based Agave client by supporting hybrid “Frankendancer” setups.

this could significantly increase throughput, though it has yet to be launched in a live environment.

Another significant upgrade, Alpenglow, focuses on improving consensus by adding features like Votor and Rotor to optimize transaction ordering and leader selection.

to between 100 and 150 milliseconds, a crucial factor for sectors such as high-frequency trading and real-time gaming. Additionally, Application-Controlled Execution (ACE) is in development to address front-running in decentralized exchanges, aiming to improve market structure .

However,

. While the roadmap highlights the importance of diverse validator clients and phased hybrid launches, data from November 2025 does not confirm whether these improvements have been fully rolled out. This ambiguity keeps investors on the sidelines, waiting for clear evidence of enhanced network stability.

Investor Outlook and Market Strategies

The response from the market to Solana’s recent troubles has been varied. On one side,

, with $57.99 million coming in during early November. On the other, the $156 million in weekly outflows signals a defensive stance, as investors gravitate toward assets with more transparent regulatory status—such as , which and ongoing legal clarity.

Solana Experiences Sharp Decline: Recommended Actions for Investors image 0

Market observers such as Czhang Lin from LBank Labs suggest that the recent selloff has created a “selective accumulation window” for those with a long-term perspective, though they warn against expecting a rapid rebound for Solana

. The network’s ongoing technical problems, combined with a broader downturn in crypto markets, have made it a less attractive option compared to more stable projects.

Opportunity or Warning Sign?

For those with a long-term view, Solana’s recent struggles present a complex decision. The network’s foundational upgrades—especially Firedancer and Alpenglow—could resolve key issues around scalability and transaction finality, both vital for institutional adoption.

and Animoca Brands’ equity tokenization using Solana also point to increasing real-world use, indicating that the ecosystem’s long-term prospects remain promising.

Yet, the persistent outages and validator instability are significant concerns. Until these upgrades are fully implemented and proven effective, Solana’s reliability will likely remain in question, discouraging risk-averse investors. The challenge is to balance the potential for future growth after upgrades against the current vulnerabilities of the network.

Summary

Solana’s recent decline serves as a reminder of the delicate balance between innovation and dependability in blockchain networks. While the technical roadmap paints an optimistic picture, the latest outages and ETF outflows emphasize the need for swift and effective improvements. At present, the environment appears more defensive than opportunistic. Investors willing to accept higher risk and with a long-term outlook might see Solana as a speculative play, but those seeking stability should proceed with caution. The next few months will be crucial in determining whether Solana can reestablish itself as a leader in high-performance blockchain technology, or if its current issues will leave a lasting mark on its reputation.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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