By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: April 2026
Solana (SOL) Risk Score
Solana (SOL) has a composite risk score of 20/100, classified as Low Risk. This score is derived from 6 active indicators and updates every 6 hours. High-performance blockchain known for fast transactions and low fees.
Solana Risk Score
Low Risk
What Does This Score Mean?
A score of 20 means Solana is in the Low Risk zone. Scores below 40 indicate relatively lower risk conditions, while scores above 60 suggest elevated risk.
This composite is computed from up to 9 indicators including on-chain data, market sentiment, and price action. The individual indicator scores are available to Alpha Factory members.
Scoring Indicators
| Indicator | Weight | Status |
|---|---|---|
| Risk Wave | 23% | Core |
| RSI (2-Week) | 18% | Core |
| ATH Distance | 5% | Core |
| Bitcoin Dominance | 5% | Core |
| Fear & Greed Index | 14% | Core |
| ALT/BTC Ratio | 5% | Core |
| BTC Production Cost | 9% | Core |
| Funding Rate | 5% | Modifier |
| Token Unlocks | 18% | Modifier |
Solana Investment Context
Solana's performance profile — fast, cheap, and developer-friendly — has made it the chain of choice for retail-facing applications, NFT marketplaces, and high-frequency DeFi. Its recovery from the FTX collapse demonstrated network resilience and community durability. Spot SOL ETF applications are pending review in the US as of early 2025.
Key Features:
- Proof of History (PoH) timestamps transactions before consensus, enabling high throughput
- Sub-second finality and fees typically under $0.01 per transaction
- Dominant blockchain for meme coin issuance and consumer-facing crypto applications in 2024
- Firedancer, a second independent validator client, is in development to improve resilience
Key Risks:
- History of network outages raises questions about reliability under peak load
- Relatively high validator hardware requirements create centralization pressure
- Close historical association with FTX continues to affect long-term perception among institutional investors
Layer 1 Category
Layer 1 blockchains are the foundational networks of crypto — they process transactions, secure the network, and host applications.
Strategy: Layer 1 tokens tend to follow Bitcoin's macro cycles but with higher volatility. A disciplined DCA approach with clear exit targets works best.
View all Layer 1 risk scores →Compare with Layer 1 Peers
| # | Coin | Score |
|---|---|---|
| 1 | Flow FLOW | 5 |
| 2 | Cardano ADA | 7 |
| 3 | Sei SEI | 7 |
Frequently Asked Questions
What is the current risk score for Solana?
Solana (SOL) currently has a composite risk score of 20/100, classified as "Low Risk". This score is derived from 6 active indicators including Risk Wave, RSI, and market sentiment data.
How risky is Solana compared to other Layer 1 coins?
Layer 1 coins generally carry medium to high risk. Layer 1 blockchains are the foundational networks of crypto — they process transactions, secure the network, and host applications. Among peers, Flow currently shows the lowest risk in this category.
What indicators are used to score Solana?
The Solana risk score uses up to 9 indicators: Risk Wave (momentum), 2-week RSI (overbought/oversold), ATH Distance, Bitcoin Dominance, Fear & Greed Index, ALT/BTC Ratio, BTC Production Cost, Funding Rate, and Token Unlocks. Each indicator is weighted based on its predictive value for altcoin market conditions.
Should I invest in Solana based on this risk score?
Risk scores are for informational purposes only and do not constitute financial advice. Solana's performance profile — fast, cheap, and developer-friendly — has made it the chain of choice for retail-facing applications, NFT marketplaces, and high-frequency DeFi. Its recovery from the FT... Always do your own research and consult a financial advisor.