What is Solana (SOL) cryptocurrency? A comprehensive explanation of its features, future prospects, and noteworthy projects

Solana (SOL) is a blockchain with excellent high-speed processing and scalability, and is one of the most notable cryptocurrency projects. It has been dubbed the "Ethereum Killer" due to its popularity and its ability to overcome the challenges posed by Ethereum (ETH), a leading blockchain used in a variety of fields.

The project has attracted particular demand in the areas of NFTs (non-fungible tokens), DeFi (decentralized finance), and blockchain gaming, with the number of users and developers both rapidly increasing.

Solana (SOL) is unique in that it is a blockchain that combines Proof of Stake (PoS) as its consensus algorithm with a technology called Proof of History (PoH).

Traditional blockchains require the entire network to agree on the processing order for each transaction, which takes time. However, PoH cryptographically proves the time, eliminating this step while ensuring reliability.

Thanks to this mechanism, Solana (SOL) is theoretically capable of processing over 65,000 transactions per second, boasting extremely high processing performance even in real-world operating environments. Another attractive feature is its extremely low gas fees. Unlike Ethereum (ETH), which can incur fees of tens of dollars due to network congestion, Solana (SOL) is a blockchain that anyone can easily use.

Solana's (SOL) high processing performance and low fees make it well suited for use in areas such as NFTs (non-fungible tokens), DeFi (decentralized finance), and blockchain games.

In the NFT (non-fungible token) realm, NFT marketplaces such as "Magic Eden" are actively trading on Solana's (SOL) blockchain, and popular collectibles such as "Degenerate Ape Academy" and "Okay Bears" have also emerged.

In the DeFi (decentralized finance) field, representative examples include projects such as "Marinade Finance" and "Raydium." These projects offer mechanisms for users to stake cryptocurrencies and earn rewards, as well as token swaps and liquidity provision through automatic market maker (AMM) functions, providing functionality comparable to that of services on Ethereum.

Solana (SOL) also has high compatibility with blockchain games (GameFi), with game projects such as "Aurory" and "Star Atlas" attracting significant attention. These games require high-speed, stable transaction processing, making use of Solana's technological capabilities.

Solana (SOL) also deploys a payment protocol called "Solana Pay," which is increasingly being used as infrastructure for instant payments in e-commerce and brick-and-mortar stores. This means that Solana (SOL) is beginning to connect with the real world not only for investment and trading, but also for everyday payments.

Solana's (SOL) strengths, including its high processing power and low fees, are significant advantages for use cases such as NFTs (non-fungible tokens) and DeFi (decentralized finance). Another major factor contributing to its popularity is the lowering of barriers to entry thanks to a growing developer community and user-friendly tools like Phantom Wallet.

However, the network has experienced multiple outages in the past, leaving issues with reliability and availability. In particular, from 2022 to 2023, temporary outages due to a concentration of spam transactions raised questions about the network's reliability as a decentralized network.

In response to these issues, the development team has addressed the issue through multiple updates and software optimizations, and since 2024, the network has enjoyed an extended period of stable operation. However, it will still take time to build the long-term reliability of Ethereum.

Current Price: $175.43

As of August 8, 2025 (CoinMarketCap "Solana (SOL) Price, Chart, Market Cap")

Solana (SOL) saw a significant rise during the cryptocurrency bubble in 2021, hitting a record high, before declining as the overall market cooled. However, development and investment have continued since then, and the price has shown signs of recovery since 2024.

What is more important for investors than price trends is the expansion of the ecosystem and technological evolution. Solana (SOL) is expected to continue to increase its user base through use cases such as DeFi (decentralized finance), NFTs (non-fungible tokens), and GameFi, and this growth may be reflected in its price.

In addition, with strong fundraising from the Solana Foundation and venture capital support, long-term growth is expected in both technological innovation and marketing.

Solana (SOL) is establishing itself as the next big player after Ethereum (ETH) and has the potential to become a core infrastructure for the Web 3.0 era. Its excellent scalability, low-cost transactions, and robust developer support will continue to attract many projects.

However, it is important to pay attention to factors such as network stability, changes in the competitive environment, and regulatory risks. When considering investment, it is important to consider medium- to long-term perspectives, such as technological evolution, actual demand, and ecosystem expansion, rather than short-term price fluctuations.

Solana (SOL) is undoubtedly one of the central projects in the cryptocurrency market going forward, and its developments are one to keep an eye on.

Image: Shutterstock

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