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

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 noteSolana’s Alpenglow upgrade could make it smarter and faster. Here’s why investors should take noteVideo Thumbnail

By Karim AbdelMawla

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: 

  1. 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. 
  2. Communication between validators will be simplified, like switching from group texts to private calls.
  3. Solana could handle up to 20% of malicious validators and another 20% of offline ones without breaking down.
  4. 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.

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.

Welcome to 21shares
Country of residence
Exchange
Investor Type
Retail Investor
Professional investor
Choose your investor type to continue.

General Disclaimers

This website belongs to and is issued by 21 Shares (consisting of 21Shares AG and its affiliates). 21Shares publishes this website solely to provide information on 21Shares and its products. This website does not constitute a public offering of financial products.  Nothing on this website should be considered advice or a recommendation to any person to subscribe for financial products or investment services and activities. 

No information published on this website constitutes a solicitation, offer or recommendation to buy or sell any investment instruments or to conclude any other transactions or any legal acts whatsoever.

The website may contain forward-looking statements. 21Shares makes no assurance that products based on crypto currencies, digital assets and indices referencing them will provide positive investment returns. Do not invest before carefully considering the risks associated with investing in such products and read in detail all pre-contractual documentation and periodic reports. Refer to the section entitled “Risk Factors” in the relevant Prospectus (consisting of all its Supplements) and the Final Terms for details on the risks associated with an investment in the products offered by the issuers before investing. Seek your own independent investment advice on all applicable legal requirements, exchange control regulations and taxes in your jurisdiction.

Charts and graphs are provided for illustrative purposes only and past performance is not an indication or guarantee of future results. The investment performance of any security referred to on this website can be volatile and can go up or down in value and you can lose your entire investment. Exchange rates may affect the value of investments. Investments in foreign currencies are additionally subject to exchange rate fluctuations and therefore carry a higher level of risk. Therefore, 21Shares cannot guarantee that any capital invested will maintain its value or increase in value.

21Shares does not guarantee the accuracy, completeness, timeliness or availability of the website information and will not be responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the content. 21Shares will not be liable for damages (including damages for loss of earnings, business interruption, loss of information or other economic losses of any kind whatsoever) arising from the use, in any form or for any purpose, of the data and information contained on the website.

The entire content of the website is protected by copyright, with all rights reserved by 21Shares. You may save or print individual pages or sections of the website only if copyright and proprietary notices remain intact. Any saving or copying of data acknowledges that copyrights and ownership rights remain with 21Shares. The website does not grant any license or right to use images, trademarks, logos, or software, and downloading or copying any part does not transfer title. 

This website and the materials herein are directed only to certain types of investors in certain jurisdictions in which 21Shares’ products may be distributed. Accordingly, the website is not directed at any person in any jurisdiction in which (by reason of that person's nationality, tax residence or otherwise) publication of or access to the website is prohibited. Persons in respect of whom such local restrictions apply must not access the website.

Agree and continue