What is SOL: Understanding the Native Token of the Solana Blockchain

Solana's Positioning and Significance

In 2017, former engineers from Qualcomm, Intel, and Dropbox launched Solana (SOL), aiming to address scalability issues in blockchain technology without compromising decentralization or security.

As a high-performance Layer 1 blockchain, Solana plays a crucial role in DeFi, NFTs, and decentralized applications (dApps).

As of 2025, Solana has become one of the top 10 cryptocurrencies by market capitalization, boasting over 2.4 million holders and an active developer community. This article will delve into its technical architecture, market performance, and future potential.

Origins and Development History

Birth Background

Solana was created by former engineers from Qualcomm, Intel, and Dropbox at the end of 2017, with the goal of solving scalability issues in blockchain technology.

It emerged during the blockchain technology boom, aiming to provide a high-performance, low-cost blockchain infrastructure to change the status quo.

Solana's launch brought new possibilities for developers and users seeking fast, scalable blockchain solutions.

Important Milestones

• 2020: Mainnet launch, achieving high throughput and low transaction costs.
• 2021: Major adoption surge, driving the price to break $250.
• 2022: Ecosystem explosion, with the number of DeFi protocols and NFT platforms surpassing hundreds.

With support from the Solana Foundation and a growing community, Solana continues to optimize its technology, security, and real-world applications.

How Does Solana Work?

Decentralized Control

Solana operates on a decentralized network of computers (nodes) spread globally, free from control by banks or governments. These nodes collaborate to validate transactions, ensuring system transparency and attack resistance, granting users greater autonomy and enhancing network resilience.

Blockchain Core

Solana's blockchain is a public, immutable digital ledger that records every transaction. Transactions are grouped into blocks and linked through cryptographic hashes to form a secure chain. Anyone can view the records, establishing trust without intermediaries. Solana's unique Proof of History (PoH) technology further enhances performance by providing a cryptographic clock for the blockchain.

Ensuring Fairness

Solana uses a Proof of Stake (PoS) consensus mechanism combined with Proof of History (PoH) to validate transactions and prevent fraudulent activities like double-spending. Validators maintain network security by staking SOL and running nodes, and are rewarded with SOL tokens. Its innovations include high throughput of up to 65,000 transactions per second and near-instant finality.

Secure Transactions

Solana uses public-private key encryption to protect transactions:

• Private keys (like secret passwords) are used to sign transactions
• Public keys (like account numbers) are used to verify ownership

This mechanism ensures fund security, while transactions remain pseudonymous. Solana also implements additional security features such as multi-signature wallets and program-derived addresses.

Solana's Market Performance

Circulation Overview

As of November 14, 2025, Solana's circulating supply is 554,029,211.9985859 tokens, with a total supply of 613,961,716.9948088. The maximum supply is infinite, indicating an inflationary model.

Price Fluctuations

Solana reached its all-time high of $293.31 on January 19, 2025, driven by overall market bullishness and increased institutional interest.

Its lowest price was $0.500801, recorded on May 12, 2020, likely due to broader market uncertainties during the early stages of the project.

These fluctuations reflect market sentiment, adoption trends, and external factors affecting the cryptocurrency space.

Click to view the current SOL market price

On-Chain Metrics

• Daily Transaction Volume: Data not available
• Active Addresses: 2,464,517 (reflecting user engagement)
• Staking Rate: Data not available

Solana Ecosystem Applications and Partnerships

Core Use Cases

Solana's ecosystem supports various applications:

• DeFi: Serum, providing decentralized trading.
• NFTs: Metaplex, driving digital collectibles and marketplaces.

Strategic Collaborations

Solana has established partnerships with Brave Browser and Circle, enhancing its technical capabilities and market influence. These partnerships provide a solid foundation for Solana's ecosystem expansion.

Controversies and Challenges

Solana faces the following challenges:

• Technical Issues: Network outages and congestion
• Regulatory Risks: Potential scrutiny from financial regulators
• Competitive Pressure: Rising competition from other Layer 1 blockchains

These issues have sparked discussions within the community and market, driving Solana's continuous innovation.

Solana Community and Social Media Atmosphere

Fan Enthusiasm

Solana's community is vibrant, with daily transaction volumes reaching millions. On X platform, related posts and hashtags (like #Solana) frequently trend, with monthly post volumes in the millions. Price surges and new feature releases ignite community enthusiasm.

Social Media Sentiment

Sentiment on X shows polarization:

• Supporters praise Solana's high performance and scalability, viewing it as the "future of decentralized finance".
• Critics focus on network stability issues and centralization concerns.

Recent trends show generally bullish sentiment during market uptrends.

Hot Topics

X users actively discuss Solana's scalability solutions, DeFi ecosystem growth, and NFT market developments, highlighting both its transformative potential and the challenges in mainstream adoption.

More Information Sources on Solana

• Official Website: Visit Solana's official website for features, use cases, and latest updates.
• Whitepaper: Solana Whitepaper details its technical architecture, goals, and vision.
• X Updates: On X platform, Solana uses @solana, with 2.9 million followers as of November 14, 2025, posts cover technical upgrades, community events, partnership news, generating thousands of likes and retweets.

Solana Future Roadmap

• 2026: Launch enhanced scalability solutions, improving TPS and network stability
• Ecosystem Goal: Support thousands of DApps and attract millions of users
• Long-term Vision: Become the leading platform for decentralized applications and Web3 infrastructure

How to Participate in Solana?

1. Purchase Channels: Buy Solana on Gate.com
2. Storage Solutions: Use Phantom wallet for secure storage
3. Participate in Governance: Engage in community decisions through Solana Realm
4. Build on Ecosystem: Visit Solana Developer Resources to develop DApps or contribute code

Summary

Solana redefines digital currency through blockchain technology, offering high performance, scalability, and efficient transactions. Its active community, rich resources, and strong market performance make it stand out in the cryptocurrency space. Despite facing technical challenges and competitive pressures, Solana's innovative spirit and clear roadmap secure its important position in the future of decentralized technology. Whether you're a newcomer or an experienced player, Solana is worth watching and participating in.

FAQ

What does sol stand for?

SOL stands for Solana, the native cryptocurrency of the Solana blockchain network. It's named after the Solana Beach in California, where the project's founders met.

What is sol in crypto?

SOL is the native cryptocurrency of the Solana blockchain, known for its high speed and low transaction costs. It's used for network fees and staking in the Solana ecosystem.

What is a sol in chemistry?

In chemistry, a sol is a colloidal suspension of solid particles in a liquid. It's a type of colloid where tiny solid particles are dispersed in a continuous liquid medium.

What is another meaning of sol?

Sol is also short for 'solution' in chemistry or 'solicitor' in legal contexts. In music, it's a note in the diatonic scale.