The Solana Foundation resolved a critical vulnerability affecting the Token-2022 and ZK ElGamal Proof programs.
By Bhushan Akolkar
Editor Julia Sakovich
Updated
2 mins read
Developers and validators at the Solana Foundation have fixed a critical bug that allowed attackers to potentially mint certain tokens on the blockchain and even withdraw them from user accounts. Despite consolidation under $150 over the past week, SOL SOL $150.7 24h volatility: 2.6% Market cap: $78.04 B Vol. 24h: $3.80 B price has shown strength with 20% gains on the monthly chart, as analysts predict higher targets of $200 and above.
Over the last weekend on May 3, the Solana Foundation flagged a critical vulnerability discovered on April 16 that could have allowed attackers to forge invalid zero-knowledge proofs and steal Token-22 confidential tokens, Solana’s privacy-focused assets.
This flaw emerged from the missing algebraic components in the ZK ElGamal proof system, which handles private balance verification. Although there was no exploit reported, the Solana Foundation was quick to deploy patches, with most validators updating their software just within two days.
The issue affected two key programs, Token-2022 and ZK ElGamal Proof, used for token logic and privacy features. Despite the user funds remaining safe, the Solana Foundation faced community backlash for its private communication with validators, thereby raising concerns for centralization and the possibility of validator collusion.
With a healthy 20% recovery over the past month from the $120 bottom, SOL price is now looking to break past the crucial resistance of $150, to stage a rally further to $200 and beyond.
Prominent crypto analyst CryptoBullet has also shared a bullish outlook for Solana, emphasizing the importance of holding above the crucial horizontal support levels as shown below.
$SOL had a great monthly close. It held the Key Horizontal level
As I said, we will spend several months above that level before the inevitable breakdown
Target/Rejection Zone: $190-230 🔨 pic.twitter.com/gpJcOPLHOG
— CryptoBullet (@CryptoBullet1) May 4, 2025
The analyst has identified the $190-$230 range as a potential target and rejection zone for the cryptocurrency in the months ahead.
Furthermore, the Solana blockchain has hit key milestones during the first quarter of 2025, outpacing top peers like Ethereum and Cardano in terms of revenue generation.
The meme coin trading activity on the platform has picked up pace. According to data from Token Terminal, Pump.fun has generated an impressive $294 million in fees year-to-date, surpassing Ethereum’s $249 million.
According to Token Terminal, PumpFun has captured $294 million in fees so far this year, surpassing Ethereum ($249 million). In addition, PumpFun's weekly fee capture level has surpassed Ethereum for 9 consecutive weeks. https://t.co/sOEC6RF2Do pic.twitter.com/7gcOtDf3io
— Wu Blockchain (@WuBlockchain) May 5, 2025
Additionally, Pump.fun has maintained a higher weekly fee capture than Ethereum for nine consecutive weeks, signaling its growing dominance in the market.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
