Solana’s Alpenglow upgrade could make it smarter and faster. Here’s why investors should take note

May 23, 2025

Solana’s Alpenglow upgrade could make it smarter and faster. Here’s why investors should take note

Solana is gearing up for a major upgrade, and investors should keep an eye on it. The proposed Alpenglow update aims to significantly enhance the network’s already impressive speed and scalability, potentially redefining what the Solana blockchain can deliver. For investors, that means one thing: greater utility could translate to greater upside.

Alpenglow is all about speed

Unveiled by Anza, a research firm spun out from Solana Labs, this consensus mechanism upgrade promises to transform Solana's performance capabilities and position it as a direct competitor to Web2 (the current version of the internet that most people use today) infrastructure, like the CME and NYSE.

It aims to slash Solana’s transaction finality time from about 12.8 seconds to just 150 milliseconds. That’s an 85x improvement, putting Solana’s performance in line with centralized Web2 systems. If implemented, Alpenglow would significantly boost Solana’s speed and responsiveness, opening the door to new types of blockchain applications and firmly positioning it as one of the fastest smart-contract platforms in the crypto space.

‍

Why should Solana’s proposed upgrade matter to investors?

The Alpenglow upgrade is anticipated to make Solana more attractive to users, whether they’re validators or builders locking Solana (SOL) in smart contracts. 21Shares believes Solana will be more appealing to its users for the following reasons:

Transaction confirmation times will be slashed from approximately 13 seconds to 0.15 of a second (faster than a blink), enabling real-time usage like in-game purchases or on-chain stock trades.
Communication between validators will be simplified, like switching from group texts to private calls.
Solana could handle up to 20% of malicious validators and another 20% of offline ones without breaking down.
Imagine replacing a winding highway with a straight tunnel; that’s how Solana’s new upgrade simplifies its data delivery system.

What are the potential use cases for Solana’s Alpenglow?

Alpenglow could dramatically expand Solana's utility for applications requiring real-time performance. Industries that might benefit include:

High-frequency trading and financial applications requiring instant settlement
Real-time multiplayer games with on-chain actions
Payment systems competing with traditional financial networks

This expanded utility could increase demand for SOL tokens needed to pay for transactions, potentially driving price appreciation.

Alpenglow is a big deal for SOL investors because it massively boosts Solana’s speed, reliability, and appeal to developers and institutions. It potentially unlocks new use cases like real-time trading, instant payments, and tokenized assets, which could drive much higher demand for the SOL token.

Share

This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not to grow as expected.‍Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.‍Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.‍Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors.‍This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.