What is Solana (SOL)? The coin, network and fees explained

Solana is a blockchain for transfers and applications; SOL is its native cryptocurrency. The network and its coin are connected, but they are not the same thing. You may use a token on Solana while still needing some SOL for the transaction.

A short history of Solana

Solana's Mainnet Beta started in March 2020. The project developed a network for processing transactions and running programs. Its applications can include payments, token trading and digital collectibles. A popular application is still a separate product with its own risks.

What is SOL used for?

Paying network fees

Solana transaction fees are paid in SOL. There is a base fee and an optional priority fee. A wallet's fee estimate is more useful than an old claim that every transaction costs the same.

The coin is not every token on the network

USDC on Solana is a different asset from SOL. A matching wallet address does not make them interchangeable. Check the selected asset and receiving network together.

A small calculation to try

Suppose you want to value 5 SOL. Enter 5 in the converter rather than reading the number for one coin as your total. If you plan to send those coins, check how the wallet deducts the fee: the amount received may differ from the amount you initially set aside. A price comparison is useful for planning, but it cannot confirm that a particular deposit address or network is supported.

How to check the value of SOL

A quote is a price for one coin, not the total in your wallet. To estimate an amount, multiply the number of coins by the quoted rate. Compare 1 SOL to USDT and 1 SOL to USDC. Different quote currencies can give slightly different numbers. Our converters provide references, not executable exchange orders.

A checklist before your first transfer

• Confirm the exact asset and receiving network.
• Read the fee preview and keep enough balance for costs.
• Check whether the receiving service supports your address and deposit method.
• Consider a small test before sending a larger amount.

What can go wrong?

The market price can fall even when a transfer works perfectly. Wallet approvals, applications and exchange custody create separate risks. A large market capitalization does not insure a deposit. Decide what you want to do before choosing an amount.

Quick answers

Do I need SOL to send a token on Solana?

Usually you need SOL for the network fee, unless an application explicitly pays it for you. Check the transaction preview.

Does using Solana guarantee an investment return?

No. Network activity and the market price of SOL are different things.

Primary sources

• Solana: history
• Solana: fees