Layer 1
Solana (SOL)
SOLData: Coinbase · updated 9/6/2026, 1:02:17 PM
What Solana does
- Processes transactions with low fees and fast confirmation times
- SOL is used to pay transaction fees and to stake with validators
- Hosts a growing ecosystem of DeFi, NFT, and consumer payment apps
- Uses a combination of proof-of-history and proof-of-stake for consensus
Risks to know
- Has a history of network outages and periods of degraded performance
- Running a validator requires relatively high-spec hardware, a centralization concern raised by critics
- Ecosystem and tooling are younger and less battle-tested than Ethereum's
- Token price is closely tied to overall crypto market sentiment
Where to trade SOL
Top-rated exchanges by CompareCEX Score. Check the exchange's market list for SOL availability before depositing.
Frequently asked questions
Why is Solana known for low fees?
Solana's architecture, including proof-of-history timestamping and parallel transaction processing, is designed to handle high transaction throughput, which keeps typical network fees low compared to many other blockchains.
Has Solana had outages before?
Yes. Solana's network has experienced multiple outages and periods of degraded performance since launch, particularly during periods of extreme transaction load. The core team has made changes over time aimed at improving stability.
What is SOL used for?
SOL pays for transaction and smart-contract fees on the network, and it can be staked with validators to help secure the chain in exchange for staking rewards.
Related coins
CompareCEX may earn a commission when you sign up through our links. This does not influence our editorial scores. Crypto assets are volatile and unregulated in many jurisdictions. Not financial advice.