Solana is a groundbreaking project in the crypto world, emerging as a direct competitor to Ethereum. With its SOL token ranking in the top 10 cryptos, the buzz surrounding this 2020-launched venture is undeniable. Delve into Solana's fundamentals and discover why investing in Solana could be a smart move by 2025.
Solana (SOL) is the native cryptocurrency of the Solana blockchain, designed to deliver fast, low-cost, and scalable transactions for decentralized applications.
Solana is a high-performance blockchain launched in 2020 that stands out for its exceptional speed and minimal transaction fees. Designed to solve the scalability problems that limit other blockchains like Bitcoin and Ethereum, Solana can process up to 65,000 transactions per second with finality in approximately 0.4 seconds.
This third-generation blockchain uses an innovative consensus mechanism combining Proof of Stake and Proof of History, the latter serving as a cryptographic clock to synchronize the network without intensive communication between nodes. This revolutionary approach allows Solana to achieve unmatched performance while maintaining a high level of security and decentralization.
Solana’s native token, SOL, is used to pay transaction fees, participate in staking to secure the network, and for protocol governance. In 2023, Solana has established itself as one of the most performant blockchain infrastructures, supporting a diverse ecosystem of decentralized applications in finance, NFTs, gaming, and many other domains.
The history of Solana begins in 2017, when Anatoly Yakovenko, a former Qualcomm engineer, conceived Proof of History (PoH) to solve scalability issues in existing blockchains. Joined by Greg Fitzgerald and Stephen Akridge, also from Qualcomm, he founded Solana Labs in 2018 to develop this vision.
In March 2020, the Solana mainnet beta blockchain was officially launched by the Solana Foundation, a non-profit organization based in Switzerland. 2021 marked a turning point with a fundraising round of $314 million and the explosion of the SOL price, which reached nearly $260 in November.
However, Solana experienced several major outages between 2021 and 2022, raising questions about its reliability. The collapse of FTX in November 2022, a platform closely linked to Solana, caused a drastic fall in SOL’s price.
Despite these challenges, Solana gradually recovered in 2023-2024, with the launch of the Solana Saga (blockchain smartphone), adoption by Visa for stablecoin payments, and the explosion of memecoins on its blockchain. By 2025, Solana has consolidated its position as one of the most performant and innovative blockchain infrastructures in the market.
Solana has established itself as a versatile blockchain infrastructure with multiple applications :
The Solana network distinguishes itself through its innovative architecture that solves the “blockchain trilemma” by maintaining a balance between decentralization, security, and scalability.
Its operation is based on eight fundamental technologies, including Proof of History (PoH), a cryptographic “clock” that establishes a chronological order of transactions without intensive communication between nodes. As well as Tower BFT, a consensus algorithm adapted from Practical Byzantine Fault Tolerance optimized to work with PoH.
The network is maintained by more than 1,500 validators who participate in securing it via an energy-efficient Proof of Stake (PoS) mechanism. To become a validator, one needs high-performance hardware, must stake SOL tokens, and maintain a stable connection.
When a user initiates a transaction, it is timestamped via PoH, transmitted to validators through the Gulf Stream system, verified, and then integrated into a block. This process takes place in a few hundred milliseconds, with fees of approximately 0.00025 SOL (a few cents).
A transaction on Solana consumes approximately the energy equivalent of two Google searches, making Solana one of the most environmentally friendly blockchains on the market.
The Solana blockchain represents a significant advancement in the field of distributed technologies, standing out for its exceptional technical characteristics.
Classified as a third-generation blockchain, Solana was designed to meet the requirements of modern applications thanks to an optimized data structure, a parallel execution model (Sealevel), a distributed storage system (Cloudbreak), and an optimized propagation protocol (Turbine).
In terms of performance, Solana vastly outperforms its competitors with 65,000 transactions per second, a finality time of 0.4 seconds, and average fees of approximately $0.005, compared to 15-30 TPS, 5 minutes, and often more than $5 for Ethereum.
Solana’s scalability is ensured by its horizontally scalable architecture, parallel transaction processing, and continuous code optimization. The blockchain also offers interoperability with other major networks such as Ethereum and Cardano.
Despite its advantages, Solana has experienced notable outages and faces concerns regarding the relatively high hardware requirements for validators. The team continues to improve stability, developer experience, and mainstream adoption.
Solana’s consensus algorithm combines two complementary mechanisms : Proof of History (PoH) and Proof of Stake (PoS).
PoH uses a sequential cryptographic hash function (SHA256) to create a verifiable record of time passage. Initial data passes through the function, the result serves as input for the next iteration, creating a mathematically verifiable chronological chain. This approach reduces latency, increases throughput, saves energy, and resists attacks.
PoS ensures network security by requiring validators to stake SOL tokens. The probability of being selected to validate a block is proportional to the amount staked, and malicious behaviors are penalized by the loss of tokens (slashing).
Solana uses a specific variant called Tower BFT, optimized to work with PoH. This PoH+PoS synergy allows for exceptional performance while maintaining security and decentralization.
Compared to other algorithms, Solana’s consensus offers significantly superior performance to PoW (Bitcoin) and standard PoS (Ethereum 2.0), but with higher hardware requirements for validators.
The Solana team continues to optimize this system with improvements to the voting process, strengthening against DDoS attacks, and better management of traffic spikes.
The security of the Solana network is based on a multi-layered architecture combining cryptographic security (SHA-256, Ed25519 algorithms), economic security (Proof of Stake mechanism), consensus security (Tower BFT), code security (regular audits), and operational security (real-time attack detection).
Validators play a crucial role, with more than 1,500 active worldwide in 2025. Their geographic and organizational diversity protects against censorship attempts or takeovers.
Solana incorporates specific protections against Sybil attacks (via PoS), denial of service attacks (minimal fees and filtering of malicious transactions), and 51% attacks (stake distribution making the attack extremely costly).
Despite these protections, Solana experienced several outages between 2021 and 2022, the longest lasting 17 hours in September 2021. In August 2022, an incident affected 9,200 wallets, but was due to a vulnerability in the Slope Finance software, not in the Solana protocol.
The team maintains a strong commitment to continuously improving security through a bug bounty program, regular updates, improved monitoring tools, and security standards for applications.
Solana (SOL) is often cited among the most performant blockchains on the market. To better understand its place in the cryptocurrency ecosystem, let’s examine its main strengths as well as its potential limitations.
Here are the main strengths that make Solana an essential player in the blockchain world :
Like any emerging technology, Solana presents certain technical, economic, and structural challenges. These elements should be considered before any adoption or investment.
SOL has had a tumultuous journey since its launch at less than $1 in March 2020. The year 2021 marked a meteoric rise, peaking at nearly $260 in November, propelled by enthusiasm for NFTs and DeFi, major investments, and growing adoption.
The 2022 bear market was brutal, with a floor of about $8 in December, representing a 95% drop from its peak. The FTX bankruptcy in November particularly affected Solana due to their close ties.
A gradual renaissance began in 2023, driven by improved network stability, the launch of the Solana Saga, and adoption by Visa. 2024 saw this trend accelerate with the explosion of memecoins on Solana, culminating in a new peak of $295 in January 2025.
In 2025, SOL oscillates between $110 and $180, with a market capitalization of approximately $70 billion. Bullish factors include its technical performance, ecosystem growth, and institutional adoption, while competition, regulatory risks, and its history of instability constitute bearish factors.
Forecasts for 2025-2030 vary considerably : an optimistic scenario envisions $300-500 by the end of 2025 and potentially $1,000 by 2030. Meanwhile, more conservative scenarios predict a range of $80-300 depending on market conditions and technical evolution.
The evolution of the Solana cryptocurrency is based on a series of key events that have shaped its ecosystem, strengthened its blockchain technology, and affirmed its place among the most innovative Web3 projects.
These events illustrate Solana’s tumultuous journey, from its initial conception to its current status as a versatile platform supporting a multitude of decentralized applications.
To buy Solana (SOL), several options are available to you in 2025. Cryptocurrency exchange platforms like Bitget, Binance, Kraken, and Weex are recommended because you actually own your tokens, can transfer them to a personal wallet, and participate in activities like staking. Conversely, brokers allow you to invest in the value of SOL without owning the underlying tokens.
Here are some CFD brokers offering the Solana token (SOL) :
Bitget has established itself as a reference for buying Solana, offering an intuitive interface, competitive fees (generally <0.1%), significant liquidity, and staking options .
To buy SOL on Bitget, simply follow these steps :
To securely store your SOL tokens, several options are available to you :
Non-custodial wallets give you total control over your private keys. Among wallets, Phantom has established itself as the reference in the Solana ecosystem, offering an intuitive interface, browser extension, mobile application, NFT support, integrated staking, and connection to dApps. For maximum security, hardware wallets like Ledger Nano X/S Plus store your private keys offline, requiring physical confirmation for each transaction.
The optimal strategy varies according to your profile. For long-term investors, use a hardware wallet as your main solution, connect it to Phantom, create a backup of your recovery phrase, and consider staking. For active traders, keep some of your SOL on reputable exchange platforms and regularly transfer your gains to a hardware wallet.
Whatever your approach, carefully protect your recovery phrase (never store it digitally, never share it), secure your devices (regular updates, antivirus), and beware of phishing (check URLs, create bookmarks for frequently visited sites).
Obtaining Solana for free is possible through several legitimate methods in 2025.
Airdrops are a common option : create a Phantom wallet, maintain a small SOL balance, follow official accounts of Solana projects, and subscribe to specialized newsletters. Reward programs from exchange platforms (referrals, promotional campaigns, Learn & Earn) also offer opportunities.
The Solana ecosystem hosts numerous Play-to-Earn games like Star Atlas, Aurory, and Mini Royale : Nations, where you can earn tokens exchangeable for SOL. Faucets distribute small amounts of SOL for free, although the amounts are modest.
If you already own SOL, staking (5-7% annual yield) and yield farming on DeFi protocols can generate passive income. Content creation on platforms like Audius or Medium and bug bounty programs for those with technical skills represent other options.
Stay vigilant against scams : beware of promises of unrealistic returns, requests to send SOL in advance, fake accounts, and pressure to act quickly.
On a global scale, Solana is not inherently illegal. Its legal status varies considerably depending on the country, ranging from full recognition to various restrictions.
In Europe, the European Union has adopted a progressive approach with the MiCA regulation.
In the United States, the situation is more complex. The SEC suggested in 2023 that SOL could be considered a security according to the Howey test, creating a zone of legal uncertainty. Despite this, buying and holding SOL remains legal for American individuals.
An important legal debate concerns the classification of SOL as a utility token (primarily serving to pay transaction fees, participate in staking and governance) or as a security (purchased with an expectation of profit depending on the founders’ efforts).
In most jurisdictions, transactions involving Solana are subject to tax obligations (capital gains, staking income) and anti-money laundering regulations (identity verification on exchange platforms).
To stay compliant, keep detailed records of your transactions, use regulated platforms, consult a tax advisor familiar with cryptocurrencies, and stay informed about regulatory developments.
The distribution of SOL tokens is a crucial aspect for understanding the Solana ecosystem and its degree of decentralization.
At its launch, the initial supply of 500 million tokens was distributed approximately between private sales and seed round (38%), founding team and employees (13%), Solana Foundation (12%), public sale (9%), community reserve (25%), and validation rewards (3%). These allocations were generally subject to lockup periods extending over several years.
In 2025, several institutional entities are among the largest holders : the Solana Foundation, which funds protocol development and supports the ecosystem; Solana Labs, the company that initially developed the protocol; major investment funds like Andreessen Horowitz, Polychain Capital, Multicoin Capital, and Jump Crypto; and large exchange platforms that collectively hold a significant share of the circulating supply.
Beyond institutional entities, several individuals (“whales“) hold significant amounts of SOL, notably founders, early employees, and early investors.
Since launch, there has been a trend toward progressive decentralization thanks to the unlocking of tokens subject to vesting, partial sales by initial holders, reward programs, and growing adoption.
Compared to other cryptocurrencies, the concentration among the top 100 holders is about 45% for Solana, versus 14% for Bitcoin, 35% for Ethereum, 50% for Cardano, and 80% for BNB.
Solana and Ethereum represent two distinct approaches to infrastructure blockchains.
Their architectures differ fundamentally : Ethereum transitioned from Proof of Work to Proof of Stake with “The Merge” in 2022, while Solana has combined Proof of Stake and Proof of History from the beginning. Ethereum adopts a layered scaling approach (L1, L2, future shards), while Solana directly optimizes its main chain. Ethereum primarily uses Solidity for smart contracts, Solana favors Rust.
In terms of performance, Solana processes about 65,000 TPS with a finality of 0.4 seconds, compared to 15-30 TPS and 5 minutes for Ethereum L1. Fees on Solana are extremely low (<$0.01), while on Ethereum they can reach several tens of dollars during congestion periods.
Regarding ecosystems, Ethereum has the most developed one with more than 4,000 active dApps and a total market capitalization exceeding $300 billion. Solana, although more recent, counts more than 1,500 dApps and a market capitalization of about $80 billion.
For decentralization and security, Ethereum is generally considered more decentralized (>500,000 validators versus ~1,500 for Solana) and has demonstrated great resilience since 2015, while Solana has experienced several notable outages.
Rather than direct competitors, these two blockchains could coexist in a multi-chain ecosystem, with Ethereum excelling in high-value financial applications and decentralized governance, and Solana specializing in applications requiring high performance and low costs.
The Solana ecosystem hosts numerous innovative projects leveraging its unique advantages.
In decentralized finance, Raydium combines the functionalities of an automated DEX with access to Serum’s order book. Marinade Finance has revolutionized SOL staking with the concept of “liquid staking”. Jupiter has established itself as the reference liquidity aggregator, while Solend dominates the decentralized lending sector.
The NFT sector is dominated by Magic Eden, capturing more than 90% of trading volume, and Tensor, which has introduced advanced features inspired by traditional financial markets.
The blockchain gaming sector includes ambitious projects like Star Atlas, a space metaverse in development on Unreal Engine 5, and Aurory, which combines RPG and creature collection in an enchanting universe.
Infrastructure is supported by Pyth Network (decentralized oracle), Phantom (reference wallet with 20 million users), and Dialect (decentralized messaging).
Payments are facilitated by USDC on Solana ($20 billion market cap) and Solana Pay (instant payments without intermediaries).
Emerging trends include the explosion of memecoins (Dogwifhat, BONK), tokenization of real assets (Parcl, Solana Stocks), and the convergence between AI and blockchain (Render Network, Bittensor).
The Solana ecosystem has experienced remarkable growth, with more than 100 million unique wallets, $50 billion in value locked in DeFi protocols, and 5 million daily active users in 2025.
Solana has established itself as a leading blockchain infrastructure, combining exceptional technical performance and a flourishing ecosystem, despite persistent challenges in terms of relative centralization and regulatory uncertainty.
For investors and users, Solana offers a unique value proposition : ultra-fast transactions at minimal costs, diverse and accessible applications, and a dynamic community in constant growth, positioning it favorably to attract new users to the blockchain universe.
In the future, growing institutional adoption, expansion into gaming and metaverses, and convergence with AI should strengthen its position, while evolution towards increased decentralization will progressively address current concerns, consolidating Solana as a major player in the crypto ecosystem.
Léa is a member of the InvestX team, dedicated to guiding users through their learning journey. Passionate about cryptocurrencies, she closely follows market trends. On InvestX.fr, Léa writes articles to help readers decode the latest news and stay informed about the ever-evolving blockchain world.
Solana is a high-performance blockchain launched in 2020, combining Proof of Stake and Proof of History to process up to 65,000 transactions per second with minimal fees. Its innovative architecture synchronizes the network via a “cryptographic clock,” reducing the need for heavy node-to-node communication.
Solana offers much faster transactions (65,000 TPS vs. 15–30), negligible fees, and greater energy efficiency. Its drawbacks include lower decentralization, a history of outages, and higher technical complexity for developers.
Buy SOL on platforms like Bitget, Binance, or Coinbase after KYC verification. For secure storage, use Phantom (a popular software wallet) for everyday use and a hardware wallet (like Ledger or Trezor) for larger amounts.
The ecosystem includes Raydium and Jupiter (DeFi), Magic Eden (NFTs), Star Atlas (gaming), Phantom (wallet), USDC and Solana Pay (payments), along with emerging projects in memecoins (Dogwifhat), tokenized real-world assets, and decentralized AI.
Solana is an appealing investment due to its powerful tech and growing adoption, but carries risks: fierce competition, regulatory uncertainty, and relatively concentrated token holdings. A diversified, long-term strategy is advised.
Stake your SOL through Phantom or Marinade Finance (5–7% annually), provide liquidity in DeFi pools like Raydium, lend your tokens on Solend, or explore automated trading strategies for advanced users.
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