Solana (SOL), launched in March 2020, is the native cryptocurrency of the Solana blockchain, a high-performance Layer 1 blockchain designed for decentralized applications (dApps) and global-scale transactions. Founded by Solana Labs, Solana offers fast, low-cost transactions, supporting DeFi, NFTs, gaming, and Web3 projects. SOL powers transaction fees, staking, and governance within the ecosystem.

Key Features

  • High Throughput: Processes over 700,000 transactions per second (TPS) with 400ms block times.
  • Low Fees: Average transaction cost is ~$0.00025, ideal for microtransactions and DeFi.
  • Scalability: Uses Proof-of-History (PoH) and Proof-of-Stake (PoS) for efficient consensus.
  • Ecosystem: Hosts 350+ projects, including Jupiter (DEX), Metaplex (NFTs), and Helium (DePIN), with $12.7B in total value locked (TVL).

SOL Token

  • Purpose: Used for transaction fees, staking, and governance on the Solana blockchain.
  • Supply: Circulating supply of ~530 million SOL, with a total supply of ~600 million.
  • Contract Address: Native to Solana; CoinGecko CMC . Add to wallets like Phantom or Solflare.

Who Are the Founders of Solana?

Solana was co-founded by Anatoly Yakovenko, Raj Gokal, Greg Fitzgerald, and Stephen Akridge in 2017, with Solana Labs launching the blockchain in 2020. The Solana Foundation, based in Geneva, Switzerland, supports ecosystem growth. Backed by investors like Andreessen Horowitz (a16z) and Multicoin Capital, Solana raised $25.6M in its initial seed sale.

What Makes Solana Unique?

Solana stands out for its high-performance blockchain:

  • Proof-of-History (PoH): Timestamps transactions to boost throughput, complementing PoS.
  • Developer-Friendly: Supports Rust, C, and Solang (Solidity-compatible compiler), attracting Ethereum developers.
  • Only Possible on Solana (OPOS): Enables unique dApps like Jupiter and Backpack due to speed and low costs.
  • Institutional Adoption: Praised by Franklin Templeton and Kraken as a leader in on-chain finance, with spot ETF proposals filed.

SOL Network Upgrades (2025)

  • Firedancer Client (Q1 2025): Introduced a second validator client by Jump Crypto, enhancing network resilience and decentralization.
  • QUIC Protocol (March 2025): Improved data transfer, boosting TPS and reducing latency for DeFi and gaming dApps.
  • Solana Mobile 2.0 (June 2025): Launched the second-generation Saga smartphone, integrating a dApp store and Web3 wallet, driving retail adoption.

How Is SOL Secured?

Solana and SOL are secured through:

  • PoH + PoS Consensus: PoH orders transactions, while PoS validators stake SOL to confirm blocks, with slashing for misbehavior.
  • Validator Diversity: Over 1,900 validators globally, with clients like Jito Labs and Firedancer ensuring resilience.
  • Network Audits: Regular audits of core protocol and dApps by firms like Halborn mitigate vulnerabilities.
  • Decentralized Governance: SOL holders vote on protocol upgrades, ensuring community-driven security.

Conclusion

Solana (SOL) powers a leading Layer 1 blockchain, delivering unparalleled speed, scalability, and low costs for DeFi, NFTs, and Web3 applications. With a vibrant ecosystem, institutional backing, and recent upgrades like Firedancer and Solana Mobile 2.0, Solana is poised to drive the future of on-chain finance and internet capital markets in the $3.5T+ crypto economy.