Coinbase Updates Solana Infrastructure – What the Key Changes Mean

Coinbase SOL Updates:- In a good news for the crypto users and investors, Coinbase has announced the much anticipated upgrade in its Solana infrastructure.

These updates are particularly soothing to the users who had faced significant struggles on Coinbase exchange and its wallet during January.

While announcing the upgrades, the exchange said that it has been working very hard to scale its Solana infrastructure since then.

What are the new Upgrades in Coinbase Solana Infra?

In early 2025, Coinbase users took to social media to vent our their frustration in the exchange’s long transactions time for Solana.

A user had reportedly said that two transactions from a Solana wallet to coinbase took him more 10 hrs – to get completed.

Now in order to solve this, Coinbase as part of its new updates has shifted to asynchronous transaction handling.

This means that its systems can now process transactions blocks in parallel. According to the largest US exchange’s X post, this will improve its block processing throughput by 5 times.

Previously, transaction blocks were processed sequentially, which created bottlenecks under heavy load.

This change alone is expected to slash wait times for transaction confirmations. This means that high‑volume periods will no longer compromise user experience or liquidity flows.

Coinbase Shifts to Bare‑Metal Machines for Enhanced liquidity

In addition to software tweaks, Coinbase has migrated critical components of its Solana stack onto dedicated bare‑metal servers rather than virtualized cloud instances.

Virtual machines sit atop a hypervisor layer, which adds CPU and I/O overhead. However, according to IBM, Bare‑metal cuts out that middle layer. This will give 100% of the hardware’s compute and memory for the Coinbase’s node processes. In simple words, it will translate directly into faster RPC responses and transaction validation.

This shift can deliver roughly a four‑fold improvement in remote procedure call (RPC) speed – allowing faster queries and state reads on the Solana ledger.

Further, Coinbase has also deployed back‑end optimizations to ensure better distribution of SOL liquidity across its order books and custody wallets. Its enhanced monitoring tools would now track on‑chain and off‑chain liquidity metrics.

These “operational changes” would give Coinbase’s operations team finer‑grained oversight to prevent order execution delays and maintain deep, frictionless liquidity for Solana assets.

Upgrade for Transactions Failures

To bolster resilience, Coinbase has also introduced advanced failover augmentations. This will automatically reroute traffic in the event of node failures or network congestion.

The upgrade implements multi‑region redundancy and health‑check protocols that detect performance degradation in real time.

If a node underperforms or becomes unresponsive, traffic immediately shifts to healthy nodes without manual intervention.

This will help in guarding users against partial outages or cascading failures that have previously led to stalled transactions.

Market Reaction

News of the Coinbase Solana infrastructure improvements has already created ripple effects across the Solana markets.

As of writing, SOL’s price has climbed by 6% to its highest level in April – trading around $136 – today. This has ended up outperforming many top cryptocurrencies – XRP, BTC, ETH – as investors viewed the upgrades as a bullish signal for on‑chain activity and exchange confidence.

Notably, SOL Price is also driven by the Solana ETF approval in Canada.

 

The upgrades become all the more important as Solana’s on‑chain trading continues to grow.

Particularly driven by the memecoin trading volume, its current state stands at over $15 billion in DEX transactions during the past seven days alone. This has surpassed every other chain in this time frame.

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