Solana is a public, decentralized blockchain that facilitates smart contracts. It uses a mechanism termed “proof of history” to verify transactions, which refers to using timestamps to prove that a transaction block was created at a specific time. SOL is the native token of this blockchain.
SOL launched in March 2020 after a public auction that raised $1.8 million by selling 8 million tokens. It didn’t take long for the token to explode and become one of the most popular cryptocurrencies. It now trades at over $28, compared to a debut price of $0.22, and has a market capitalization of over $10 billion, according to CoinMarketCap.
Solana Use Cases
- Non-fungible tokens (NFTs): You can use SOL to trade NFTs on compatible platforms like Magic Eden and OpenSea.
- Decentralized apps (dapps): You can use SOL to transact on various decentralized apps, such as games and gambling platforms.
- Staking: You can stake your SOL tokens to help validate transactions on the Solana blockchain and earn rewards.
- Lending: You can lend your SOL tokens on various centralized or decentralized platforms, e.g., Solend, and earn interest.
Software engineer Anatoly Yakovenko published a white paper about the Solana project in November 2017. He teamed up with Raj Gokal, an investor and product designer, to execute the concept. Solana’s first transaction block was created in March 2020 — the SOL token was publicly launched in an auction held on CoinList in that same month.
The public SOL auction drew interest from over 400 people in 91 countries. Before the public auction, Solana raised $20 million from private token sales to investors including crypto exchange FTX and venture capital firms Multicoin Capital and Andreessen Horowitz.
- November 2017: A white paper for Solana was published, describing a unique transaction validation mechanism known as “proof of history”.
- April 2018 to July 2019: The Solana project raised $20 million from private token sales.
- March 2020: Solana’s first transaction block was created and a public auction for the native SOL token was held.
- March 2021: The first NFT project was minted on the Solana blockchain.
- September 2021: The Solana network briefly went down after reaching 400,000 users.
- August 2022: The Solana blockchain was targeted by hackers who stole roughly $6 million from thousands of wallets.
- November 2022: Google Cloud, one of the top-five cloud storage providers, established itself as a Solana validator.
What is the Price of Solana?
The price of SOL depends on the global supply and demand for the cryptocurrency and other macroeconomic factors like market sentiment, regulation, and competition. It has a current price of around $28 and a total market value of around $10 billion, according to CoinMarketCap.
Solana Price History
SOL sold for $0.22 apiece in its debut auction in March 2020. It exploded shortly after, rising to a peak price of $259 in July 2021. It gradually came down from that level, ending 2021 at $170, and slumped to below $30 as of November 2022 due to the crypto market crash.
- March 2020: Solana debuted at $0.22 apiece.
- February 2021: SOL crossed $10 for the first time.
- August 2021: Crossed $50 for the first time.
- September 2021: Surpassed $100.
- October 2021: Surpassed $200.
- November 2021: Reached a peak price of $259.
- May 2022: SOL fell back below $50.
- August 2022: SOL slumped below $30, a one-year low for the token.
Solana Annual Closing Prices and % Return
|Starting price||Ending price||% Return|
Frequently Asked Questions
What is Solana worth now?
Solana is currently worth $28.
How high can Solana go?
If market conditions favor the Solana token, it can rise up to its previous peak price of over $250.
Is Solana’s SOL token available in fractional amounts?
Yes, it’s available in fractional amounts called lamports. A lamport is equal to 0.000000001 SOL.