Can Solana shed its memecoin image in 2026?
Solana heads into 2026 facing the question of whether infrastructure upgrades and tokenized financial activity can push the network beyond its memecoin reputation.Solana kicked off 2025 at the height of the memecoin frenzy, with Solana reaching a new all-time high of $293 on Jan. 19. As memecoin volumes cooled over the year, SOL had fallen to around $130 by mid-December.âSolana needs to shake off the stamp of âmemecoin [or] NFTâ chain and position itself as a serious place for Web2 and Web3 financial businesses to come and build the future of finance,â Tomas Fanta, principal at the crypto investment firm Heartcore, told Cointelegraph.Whether Solana can move beyond that reputation will depend largely on the success of its infrastructure upgrades. Next year, Solana is expected to advance its Firedancer validator client adoption, which proposes consensus changes and execution-layer improvements that aim to make the network more predictable and resilient. Solanaâs Firedancer is already liveThe layer-1 blockchainâs infrastructure push is already moving ahead. The Firedancer validator client is now running on mainnet.Firedancer, developed by Jump Crypto, is a reimplementation of Solanaâs validator software designed to improve performance. The client is capable of processing up to around 1 million transactions per second (TPS) under ideal conditions.The Solana Foundation said on Dec. 12 that Firedancer has been producing blocks on mainnet for more than 100 days outside of test environments. Two validators are currently running the full Firedancer client, but a hybrid version known as âFrankendancerâ has seen far broader adoption. Data shows roughly 165 validators, representing about 26% of the total stake, are now running Frankendancer alongside the existing Agave client. Doug Colkitt, a founding contributor to Fogo, a layer-1 blockchain currently running Frankendancer, told Cointelegraph that the bigger test will come as more stake shifts onto pure Firedancer because stability at a tiny share of the network does not guarantee stability at scale.âA lot of times, a client can be stable when you test it as a small percent of the network, and then certain things might not really emerge until you scale up to a larger percent of the network.âFor builders working on latency-sensitive financial products, those changes to performance already matter.âFor products like ours, where milliseconds matter, I expect the Firedancer upgrade to make trading even faster,â said Igor Stadnyk, co-founder and AI lead at True Trading â a Solana-based AI trading platform.Related: DATs bring cryptoâs insider trading problem to TradFi: Shane MolidorMore important than raw performance is whether that performance can be relied on consistently, Stadnyk said.âFiredancer matters for a reason that doesnât get enough attention: predictability. Throughput and latency improvements are great, but more importantly, Solana gets a fully independent client with a different codebase, engineering culture and failure modes.âAlongside Firedancer, Solana developers are also preparing for Alpenglow, a proposed overhaul of Solanaâs consensus design. The upgrade would replace proof-of-history and TowerBFT to cut block finality to roughly 150 milliseconds while improving the networkâs ability to stay live even if a portion of validators are unresponsive. âIf successfully implemented, this new consensus mechanism will unlock Solana for the next level of performance,â Fanta said.Memecoins donât have to be Solanaâs unintended burdenMemecoins have been one of Solanaâs top growth engines, driving user activity and cultural relevance in the last couple of years. That activity helped pull developers and traders onto the network and played a major role in Solanaâs decentralized finance resurgence.At the same time, the dominance of memecoin trading has shaped how the network is perceived by investors and financial institutions, often tying Solanaâs growth to speculative cycles. âMemecoins wonât disappear. Theyâre part of Solanaâs cultural identity and a liquidity engine that brings users in,â said Stadnyk.He added that the next phase of growth is likely to come from applications that rely less on viral speculation and more on consistent execution, such as onchain perpetual futures and AI-native trading agents.Memecoin trading has also reshaped how liquidity is provided on Solana. Over the past year, the network has seen the rise of prop automated market makers (AMMs), where trading firms deploy their own capital and algorithms onchain rather than relying on permissionless liquidity pools.âIn 2025, prop AMMs probably changed everything. Solana has always been a very trading-focused chain, and prop AMMs really revolutionized the market structure there â at least in spot trading.âColkitt said the model came with trade-offs, particularly around centralization, but argued that it emerged as a direct response to demand.âIf you didnât have the memecoin explosion, you wouldnât have had the explosion of activity in Solana,â he said. âYou wouldnât have built out the market structure or the infrastructure without that volume of transactions.âRelated: How prediction markets raise insider trading and credit risksThat same trading intensity has also shaped how Solana generates revenue. As the network matures, the challenge is reducing memecoinsâ influence on revenue and sentiment without undermining the activity that drove its recent growth.Fanta pointed to the importance of growing real economic value (REV) in ways that are less dependent on memecoin-induced maximal extractable value (MEV). MEV is a form of revenue generated by transaction ordering, and it can dominate network revenue during periods of intense speculative trading.âIf Solana can continue to grow its REV in a more sustainable, less memecoin-induced MEV way, institutional investors will take notice and reevaluate SOLâs value proposition under a very different risk framework,â Fanta said.Fanta added that failing to attract more serious financial and corporate builders, particularly as many Web2 firms continue to experiment on EVM-based networks, could limit how far that reevaluation goes as Solana moves into 2026.Solanaâs bull and bear caseAs Solana heads into 2026, the networkâs outlook increasingly comes down to execution. The bull case, as Fanta said, rests on infrastructure upgrades delivering as intended and new forms of financial activity gaining real traction.Successful rollouts of Firedancer and proposed consensus changes, combined with growth in tokenized funds, equities and other real-world assets, could help Solana generate more sustainable REV and shift how institutional investors assess its risk profile.Colkitt said derivatives trading in 2025 has been a missed opportunity, with the network failing to produce a credible onchain rival to Hyperliquid during the last cycle. The absence of such a platform reflects Solanaâs broader challenge as it looks to move beyond memecoins toward higher-stakes financial markets.The downside risks for Solana are that deep protocol changes increase the danger of chain halts, an outcome that would quickly revive criticism tied to Solanaâs earlier outages and weigh on sentiment. Fanta argued that failure to attract larger Web2 and financial firms, many of which continue to experiment on Ethereum Virtual Machine-based networks, could cap Solanaâs growth even if its performance advantages persist.For builders like Stadnyk, the outcome hinges on whether Solana can turn its technical advantages into something dependable.âSolana is the first environment where that vision is actually executable: low latency, predictable finality, cheap state reads and tooling that no longer feels experimental,â he said, referring to real-time, automated trading systems.Stadnyk said 2026 could be the year Solana demonstrates that full-stack onchain trading can operate at a level previously reserved for centralized exchanges.