1. What is SOL?

SOL is the native cryptocurrency of the Solana blockchain, designed to power transactions, secure the network, and enable decentralized applications (dApps). As a fundamental asset within the Solana ecosystem, SOL plays a key role in maintaining the blockchain’s efficiency, scalability, and low-cost transactions.

 

Solana utilizes a unique hybrid consensus mechanism combining Proof of Stake (PoS) and Proof of History (PoH) to process transactions at high speeds. This structure allows the network to handle thousands of transactions per second while keeping costs minimal.

 

 

1.1 How Does SOL Work?

Key Features of SOL:

Transaction Utility: SOL is used to pay for on-chain activities, including smart contract execution and decentralized applications.

 

Staking & Security: Users can stake SOL to participate in network validation and earn rewards.

 

Scalability & Speed: Enables fast, low-cost transactions with a throughput exceeding 50,000 transactions per second (TPS).

 

Eco-friendly: Solana operates with a net-zero carbon impact, making it an energy-efficient blockchain alternative.

 

1.2 SOL Founding Team

SOL is an integral part of the Solana blockchain, which was founded by Anatoly Yakovenko in 2017. Yakovenko, a former Qualcomm engineer, introduced the concept of Proof of History (PoH) to improve blockchain scalability. He collaborated with co-founders Greg Fitzgerald, Stephen Akridge, and Raj Gokal to develop Solana as a next-generation blockchain capable of overcoming Ethereum’s limitations in speed and cost.

 

Originally named Loom, the project was later rebranded to Solana. In 2019, Solana Labs raised $20 million through private token sales before officially launching the Solana mainnet and the SOL token in March 2020. Today, the Solana Foundation, based in Switzerland, continues to oversee SOL’s ecosystem growth.

 

1.3 SOL Tokenomics

The SOL token serves multiple functions within the Solana network, from paying transaction fees to securing the blockchain through staking.

 

Key Functions of SOL:

SOL serves multiple essential functions within the Solana ecosystem. It is primarily used to pay for transaction fees, ensuring seamless processing of on-chain activities, including smart contract execution and decentralized applications. Additionally, SOL holders can stake their tokens to participate in network validation, securing the blockchain while earning passive income as rewards. Beyond its utility in transactions and staking, SOL also plays a role in governance, allowing token holders to influence key decisions regarding the network’s development and future upgrades.

 

SOL Token Supply & Distribution:

Initial supply: 500 million SOL

 

Current circulating supply: Varies due to staking rewards and token emissions.

 

Inflationary model: Begins at 8% per year, gradually decreasing to 1.5% per year over time.

 

Burning mechanism: A portion of SOL transaction fees is burned to manage inflation.

 

 

2. Is SOL a Good Investment?

The investment potential of SOL has been a widely discussed topic among crypto enthusiasts. With its rapid growth and strong technological foundation, SOL has proven to be a valuable asset in the digital economy. The token’s price has historically surged due to increased adoption in decentralized finance (DeFi), NFTs, and gaming sectors. Additionally, recent geopolitical developments have further boosted its credibility.

 

A notable event in 2025 was U.S. President Donald Trump’s announcement that SOL, along with XRP and ADA, would be included in a U.S. strategic crypto reserve. This decision marked a significant milestone, acknowledging SOL as a key cryptocurrency in national digital asset discussions. Following the announcement, SOL experienced a 23% price surge, reflecting strong market confidence. The U.S. government's recognition of SOL further reinforces its legitimacy, making it an attractive investment option for institutional and retail investors alike.

 

However, as with any cryptocurrency, investment in SOL comes with risks, including market volatility, regulatory uncertainty, and competition from other blockchain networks such as Ethereum and Cardano. Investors should conduct thorough research, monitor market trends, and consider the long-term potential of SOL before making investment decisions.

 

3. How to Buy SOL?

Understanding how to buy SOL is essential for those interested in participating in the Solana ecosystem. Purchasing SOL on reputable exchanges is simple and accessible to all types of investors. One of the best platforms to buy SOL is BingX, known for its security, user-friendly interface, and cost-effective transactions.

 

To get started, create an account on BingX, complete the necessary security verification, and deposit funds. On-chain deposits are highly cost-effective on BingX, with fees as low as 1 USD when using the TRC-20 protocol, making it a cheaper option compared to credit card transactions that involve higher banking fees. BingX also supports multiple networks, including POLY, BEP, and ERC, giving users flexibility when transferring funds.

 

Once your account is funded, you can choose between spot trading and derivatives. Spot trading allows you to own SOL tokens directly, enabling you to buy at low prices and sell for profit. Alternatively, derivatives trading lets you capitalize on price movements without holding the actual tokens, making it an option for traders looking to profit from both rising and falling markets. BingX provides direct spot purchases through its market, as well as peer-to-peer (P2P) transactions with other users. For derivatives, you can trade SOL in the USDT-M futures market or the Coin-M futures market, alongside other popular cryptocurrencies.

 

Now BingX offers exclusive gifts up to $6,000 by signing up for a BingX user account. Register your account and trade now!