About Solana

The Solana price is $20.66, a change of 5.35% over the past 24 hours as of 1:41 p.m. The recent price action in Solana left the tokens market capitalization at $8,188,231,690.43. So far this year, Solana has a change of 106.37%. Solana is classified as a Smart Contract Platform under CoinDesks Digital Asset Classification Standard (DACS).

SOL is the native cryptocurrency of the Solana blockchain, a platform that has fast transaction times and inexpensive fees.

SOL price

SOL is used in two ways:

  • Pay for transaction fees: Though Solana's fees are supposed to be cheaper than those of other cryptocurrencies, it still charges a fee to send transactions or run smart contracts, the blockchain-based computer programs that cut out intermediaries from digital transactions. Smart contracts are the building blocks of more complicated apps on Solana, such as finance apps or apps for music streaming.
  • Staking: Like many other blockchains, Solana is secured through a consensus mechanism. People who want to help secure the cryptocurrency by being a "validator," can "stake" some of their SOL, or lock it up to secure the network and earn money while doing so.

Solana is an inflationary cryptocurrency with no hard cap on the total number of tokens. It has a starting annual inflation rate of 8%, which will decrease by 15% every year until it reaches 1.5%, which will be the fixed long-term rate.

Thirty-seven percent of the SOL tokens that were initially distributed went to investors, 25% was split between Solana's team and the Solana Foundation, the nonprofit steering development of the cryptocurrency, and 38% was sent to Solana Foundation's community fund reserve.

After the launch of SOL in March 2020, SOL's price bounced between $0.50 and $1.50 for the rest of the year. Then, SOL became one of the top-performing assets amid the crypto bull run in 2021, as its price hit $55.91 by May 2021. Though it dipped to as low as $23.49 in July 2021, SOL's price surged again in the second half of the year, hitting its all-time high of $258.93 in November 2021.

How Solana works

Solana is best known as a competitor to Ethereum, the second-largest blockchain project by market capitalization. Like Ethereum, Solana offers a way to build decentralized applications, which are similar to normal apps like Twitter and Robinhood, but with the help of blockchains, they strip away intermediaries.

One of the key problems with Ethereum is that it's expensive to execute programs. Ethereum has been building "layer 2" technologies to get around that problem. Solana aims to fix the scalability issues with what it claims is an improved underlying infrastructure that offers faster and cheaper transactions.

Cryptocurrencies are decentralized, with many distributed entities running the required infrastructure. Most cryptocurrencies use what's known as a "consensus mechanism" to tie all of these components together so that they agree which transactions are valid and which aren’t.

In order to accomplish that, Solana uses proof-of-stake, a popular consensus mechanism that's supposed to be more eco-friendly than Bitcoin's proof-of-work method. "Validators," tasked with ensuring transactions are valid, are chosen based on how many SOL tokens they own. But Solana's version of proof-of-stake has a twist. Solana's "core advancement," according to Solana's founder, is "proof-of-history." This refers to a method of proving that an event happened at a particular time. Proof-of-history aims to speed up the process of ordering transactions in a blockchain, which is integral to the system's security.

However, it's worth noting that some are skeptical of the security of alternatives to proof-of-work, because they might lead to a less decentralized system.

Key events and management

Solana was founded by software engineer Anatoly Yakovenko in 2017 and after three years of development, the platform and token were launched.

Solana's investors include Multicoin Capital, Distributed Global, BlockTower Capital, Foundation Capital, Blockchange Ventures, Slow Ventures, NEO Global Capital, Passport Capital and Rockaway Ventures.

In August 2022, CoinDesk reported Ian Macalinao, the chief architect of Solana's once mighty stablecoin exchange Saber, hid behind anonymous developer accounts to pump billions of dollars into his DeFi empire.

Read less...
Sponsor LogoBuy crypto on a secure, trusted platform.
Cryptoassets are highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Latest About Solana

View All
CoinDesk - Unknown
First Mover Asia: Bitcoin Recovers From Fed Dip

PLUS: The MadLads hype appears to be over, although it hasn't dragged down the price of Solana.

CoinDesk - Unknown
CoinDesk - Unknown
Decentralized Wireless Project Helium Begins Move to Solana Blockchain

The change aims to make Helium faster and cheaper to operate.

CoinDesk - Unknown
CoinDesk - Unknown
Helium's HNT Crypto Token Slides to 2-Month Low After Binance.US Delisting Announcement

The token will be delisted from Binance's U.S. exchange on March 21.

CoinDesk - Unknown
CoinDesk - Unknown
Polygon, Solana Tokens Lead Majors Slide Amid Bitcoin Weakness

Bitcoin dumped Thursday on the back of multiple catalysts that contributed to selling pressure.

CoinDesk - Unknown
"The Hash" hosts weigh in on the biggest stories shaping the crypto industry today Read more...

Crypto Sectors

Solana (SOL)
is in the Smart Contract Platform Sector of the Digital asset ecosystem, according to the CoinDesk DACS.
CoinDesk Indices DACS - All Sectors
  • Sector
    Market Cap
Sources & Dates: CoinDesk Indices 3/15/2023. Market capitalization data is based on 2/28/2023

Bitcoin Calculator

Last Updated on 05/28/23 1:41 PM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.

Market Analysis
Social Analysis