Solana is a high-performance blockchain that supports fast, low-cost, and scalable transactions. Its native cryptocurrency, SOL, currently ranks among the top 10 cryptocurrencies in the world, based on market cap.
What makes Solana unique?
Like Ethereum, Solana supports smart contract functions. This enables developers to create decentralised applications with the Solana blockchain, like a music streaming service that lets artists set their own terms or a fitness app that allows users to earn crypto for walking or running.
However, Solana is different from Ethereum in two very important ways: it has lower transaction fees and it processes transactions at greater speeds.
Solana has ensured that costs remain less than $0.01 per transaction. It can also process thousands of transactions every second, which makes it much faster than Ethereum’s 15-45 transactions per second. Ethereum may be more mature, stable, and popular, but Solana’s transaction speeds and low fees make it one of the faster and more cost-effective blockchains in the world today.
However, it's also worth noting that Solana has had a number of network outages in the past. You can learn more about Solana's network outages, during which time SOL sends and receives become temporarily unavailable on Luno.
What makes Solana faster than other blockchains?
Blockchains are managed by many computers spread across the world. There’s no central authority saying “my version of the blockchain is accurate” or “this transaction is valid, and that one is invalid.” It’s a much more democratic process: the majority of computers need to agree on a single version of the truth, and it can take some time for them to all reach an agreement.
Strangely, something that’s difficult for all these computers to agree on is the time.
There’s an old saying: a person with a watch knows what time it is; a person with two watches is not so sure. Now imagine hundreds of computers, spread across multiple time zones, working with different internet and processing speeds. Without a centralised time-keeper, it becomes tricky to answer a basic question: did my transaction happen before or after your transaction?
Solana solves that problem with something called Proof of History. This is a mechanism that uses cryptography to definitively prove the passage of time between one blockchain event and another. Instead of relying on a hundred conflicting time-keepers, the Solana blockchain itself is a ticking clock that keeps everything in order.
With Proof of History, Solana’s transactions have their correct time built into them from the start. If everyone already knows where each new transaction belongs on the blockchain, they don’t need to spend any time coming to an agreement about that. This allows the network to focus on much more important business: confirming transactions as quickly as possible.
Security incidents
Solana has experienced the following security incidents:
Mainnet Beta Outages (2020–2023): The network suffered multiple major outages due to various issues, including a block propagation bug (Dec 2020), IDO-related spam (Sept 2021), NFT minting spam (April 2022), and software bugs (June 2022). By late 2023, the network achieved its longest streak of continuous uptime. Source: Helius
Upbit Hot-Wallet Hack (Reported 2024/2025): Cybercriminals, allegedly linked to North Korea, targeted exchange hot-wallets, resulting in the theft of approximately $36 million in assets, including Solana-based holdings. Source: Coindesk
Pump.fun RICO Class Action (July 2025): An amended class-action lawsuit named Solana Labs and the Solana Foundation as co-defendants, alleging they facilitated a $5.5 billion unlicensed gambling scheme via the meme-coin platform Pump.fun. Source: Coindesk
The above list of incidents may not be exhaustive. As always, it’s important that you do your own research to ensure you’re comfortable with an asset’s associated risks before investing in it.
Token supply and concentration
Solana has an estimated circulating supply of ~559.53 million SOL as of November 2025. The top 100 holders control approximately 22.76% of the total supply.
Visit this external link to see the distribution among SOL’s top token holders.
Tip
Keen to learn more? Read about Proof of History and get all of the latest cryptocurrency news on Luno Discover.
Want to know how to buy, sell, send and receive Solana? We’ve got answers in these help articles:
This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.