Solana Treasuries might be new, but they are getting popular at a fast pace. Thanks to Solana’s stellar rally from $14 to $294 in the last two years. Despite a downturn in price, Solana offers a high-speed and low-cost, reliable blockchain, which then makes it lucrative for Digital Asset Treasuries.
However,all investments come at a risk. Despite being one of the leading chains with a highly decentralized validator network, Solana has a much higher volatility than Bitcoin and Ethereum. Furthermore, it poses a significantly higher risk of security issues.
In this article, we will explore what makes a Solana Treasury riskier than Bitcoin and Etheruem. We will also understand the types of risk they have and try to navigate towards a solution to mitigate those risks.
Why is a Solana Treasury Riskier?
Solana Treasuries are slightly riskier than Bitcoin or Ethereum Treasuries due to the fundamental factors associated with Solana.
First, Solana, as a blockchain, is a lot less mature than Bitcoin and Ethereum. This opens up risks for black swan events, such as the crash we saw during the Trump and Melania coin launches.
Second, Solana’s main revenue source was the memecoin rally, which fizzled out in early 2025. With the current revenue, Solana is significantly weaker than it was in late 2024, during the memecoin rally. Less revenue leaves less money for the Solana ecosystem to develop the chain.
Third, Solana is a chain prone to hackers, scammers, and phishing attackers, which opens up another dimension of risk.
Fourth, Solana Treasuries are fewer in number and have a lower net asset value. Any market crash is likely to wipe out the idea of a Solana Treasury. In the case of Bitcoin and Ethereum, they are far more mainstream and unlikely to be affected by a market crash.
Finally, Solana is a lot more volatile than Bitcoin and Ethereum, which results in a lot more turbulence for the investor’s portfolio. This aspect forces several investors to invest in Solana as a diversification rather than as the main asset.
As a result, all treasuries investing in Solana also face a greater risk to their investments than their Bitcoin or Ethereum counterparts.
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Mitigating Risks For Solana Treasuries
There is no financial risk that cannot be mitigated. Solana Treasuries can also easily mitigate the risks arising from the factors mentioned above.
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Protocol Risk
The Solana blockchain’s lack of maturity could be managed with a bridged SOL token. There are several Solana-pegged tokens as ERC-20 coins. Investors who prefer the Ethereum blockchain can transfer their SOL tokens to Ethereum using these coins. However, it is crucial to ensure liquidity before moving the assets.
Price Risks
Price Volatility has long been addressed by holding a considerable amount of stablecoins or diversifying to other cryptocurrencies, such as altcoins. A mixed-bag treasury is significantly more resistant to market volatility than a single-asset treasury.
Security Risks for a Solana Treasury
Solana has faced numerous security issues, including hacks, scams, and wallet drains. However, a lot of them arise from human error. Addressing human errors in a professional way could help. For example, the treasury must hold the SOL in a multi-sig cold storage wallet where the key holders are technologically experienced people, like lead developers.
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