Solana’s blistering rally has sparked discussions about its underlying blockchain and the launch of a Layer 2 solution by the end of 2025. Nick White, COO at Celestia, boldly claimed that L2s are inevitable, despite resistance against rollups from certain quarters. “An L2 will launch on Solana before the end of 2025. They can resist and shit on rollups to their hearts’ content, but it will happen whether they like it or not. Resisting modularity is futile.”
Echoing a similar sentiment, co-founder of Solana Labs Anatoly Yakovenko still emphasized that the primary goal of the SOL base layer is to maintain competitive fees even if layer-2 solutions arrive on the scene.
However, some expressed reservations about Solana’s L-2 quest. CEO of Blockchair Nikita Zhavoronkov warns against solely focusing on fully custodial centralized L2s. Instead, scale L1 to gain a competitive advantage over Ethereum, he wrote.
Modularity is good as long as everyone is not locked into custodial solutions. Ethereum is “modular” now, but all it has is fully custodial centralized L2s, which can steal user funds via admin keys. Solana’s selling point, which can overthrow Ethereum, is scaling L1. If Solana decides to scale via L2s instead of L1, it’ll lose its only competitive advantage over Ethereum.
While Solana proponents have discussed the possibility of rollups on the network, there’s a consensus that pushing the L1 network to its limits should be prioritized before adopting L2 solutions.
Solana Breaks Records in Price and Popularity
SOL’s impressive rally has boosted the altcoin troupe. Since hitting bottom in Dec. 2022, the token’s value has been soaring and has risen nearly twenty times from its lowest low, per market analyst Negentropic.
Based on Fib levels, a technical indicator that identifies potential areas of support and resistance in a price trend, popular trader Negentropic predicted a sustained upward movement in the price action. The Fib levels mentioned here are price targets: 268, 427, and 686.
Moreover, the search popularity of the word Solana reached 100, indicating the highest level of interest for this specific term. Not only that, this has set a new precedent in the blockchain’s 5-year history. Till now, the layer-1 network recorded the second-highest search popularity of 84 in early September 2021.