Solana's Price Surge Reversed Amid US-Iran Tensions

Solana's price surge on Friday was short-lived as US-Iran tensions weighed heavily on risk sentiment.

The cryptocurrency's major consensus upgrade, Alpenglow, reached the second public test network on September 26. This update aims to reduce transaction finality from around 12.8 seconds to approximately 150 milliseconds by replacing TowerBFT architecture with Votor consensus mechanism.

The rollout is happening in phases and is considered one of Solana's largest protocol upgrades in history.

A proposal by Iran to reopen the Strait of Hormuz within seven days helped turn risk sentiment around, causing Solana's price to reach new highs on Friday.

However, Trump rejected this proposal over the weekend, stating he expected to resume bombing Iran after the midterms. This negative development weighed on the crypto market, erasing Solana's gains from the previous day.

The focus remains on the Middle East and the Fed, with a breakthrough potentially being positive for Solana as it would likely reduce aggressive rate hike bets.