Solana’s investment potential is bolstered by its vibrant ecosystem, with over 1,000 dApps and a 150% increase in developer activity in 2025, driven by tools like Anchor and Rust-based smart contracts. Its mobile-first strategy, including the Saga phone and Solana Pay, enhances retail adoption. However, risks include competition from Ethereum L2s like Arbitrum and emerging chains like Sui, which challenge Solana’s market share. Investors could stake SOL for governance benefits or participate in DeFi protocols like Marinade for yield, while using stop-loss orders to manage volatility risks from competitive pressures.