Solana April 2025 Update

Momentum Metrics

SOL-denominated open interest across centralized exchanges remains near all-time highs (38.5M SOL), which suggests that traders are positioned for a sharp move in price. On a related note, funding rates are no longer in negative territory, though they remain relatively low.

Market positioning reflects bullish sentiment onchain. SOL collateral deposited on Kamino hit a new all-time high of 5.1M SOL ($750M), while borrows for the three largest stablecoins on the main market (USDC, USDT, and USDS) reached a new all-time high of $324M. As of May 5, 2025, there is about $208M worth of stablecoins borrowed against SOL collateral on Kamino, suggesting that investors are leveraged long SOL on the money market.

Network Health

Post Mortem: ZK ElGamal Proof Program Bug

On May 2, 2025, the Solana Foundation released a post-mortem revealing that a recent network incident was caused by a critical bug in Solana's onchain ZK ElGamal Proof program – a component of its Token-2022 system. This cryptographic flaw meant that certain data weren't properly included in the proof verification hash, allowing a skilled attacker to forge a false zero-knowledge proof that the network would accept as valid. In practical terms, the vulnerability could have enabled unlimited minting of new tokens or unauthorized withdrawals from any account using that token standard, posing a serious threat to the network.