Solana

Solana is a high-performance layer-1 blockchain that has emerged as the leading alternative to Ethereum for high-throughput, low-latency smart-contract applications. SOL is the native token used for transaction fees and staking. The Solana network claims theoretical throughput of 50,000+ transactions per second (vs. Ethereum's ~15 tps and Bitcoin's ~7 tps) using a proof-of-stake variant combined with a unique 'Proof of History' consensus innovation. In practice, real-world Solana throughput typically runs 1,000-3,000 tps with sub-second finality and transaction fees averaging well under $0.01.

Solana's ecosystem has grown to host the second-largest DeFi total value locked after Ethereum, the largest NFT marketplaces by transaction count (Magic Eden, Tensor), several major launchpad ecosystems for AI-token and memecoin issuance, and a growing share of Web3 consumer applications (Helium decentralised wireless, Render Network distributed GPU compute). The chain's combination of speed, cost and ecosystem depth makes it the leading 'Ethereum killer' candidate.

Solana was founded in 2017 by Anatoly Yakovenko (former Qualcomm engineer) with the mainnet launching in March 2020. The early validator-set and ecosystem build-out was supported by Solana Labs and the Solana Foundation. SOL went mainstream in 2021 during the DeFi/NFT boom, with the token rallying from under $2 in January 2021 to an all-time high of $260.06 in November 2021. The 2022 FTX collapse hit Solana particularly hard (FTX/Alameda were major SOL holders and Solana ecosystem investors); SOL crashed to a low of $8.71 in December 2022. The recovery from 2023 onward was one of the strongest in crypto: SOL retook $100 by late 2023 and $260 in early 2025.

Notable events: 2021 ATH, 2022 FTX collapse and SOL crash to $8, 2022-23 multiple network outages (Solana experienced several day-long downtimes during the 2021-22 period — these have largely been resolved in 2023-2025), 2024 Firedancer client implementation reaching mainnet beta, 2025 spot SOL ETF filings.

Solana trades 24/7/365:

Read SOL alongside three signals. First, Solana network metrics — daily transactions, active addresses, DeFi TVL, NFT trading volume. Solana is one of the few chains where on-chain activity directly drives SOL demand via fees. Second, ecosystem narrative cycles — Solana has been the leading chain for memecoin launches (BONK, WIF, PEPE-on-Solana ecosystem), AI-token plays, and consumer apps. When these narratives heat up, SOL outperforms. Third, the SOL/ETH ratio — when Solana is gaining share from Ethereum, SOL outperforms; the ratio has more than 3x'd from late-2022 lows.

Solana validators face heavier hardware requirements than Ethereum validators, which has historically led to lower validator-count and higher centralisation concerns. The 2024-25 Firedancer client (a high-performance validator implementation from Jump Trading) is designed to improve client diversity and resilience.