Solana (SOL): what it is, why it scores well, and what to watch
The fastest of the large blockchains, built so that ordinary apps feel instant and cost almost nothing to use.
We show this whichever way it has gone.
What it is
Solana is a blockchain designed around speed. Where older networks handle a handful of transactions a second and charge meaningful fees, Solana handles thousands and charges a fraction of a penny. That difference is what makes it practical to build things ordinary people would actually use, like payment apps and games, rather than only high-value financial transfers. SOL is the coin that pays for that activity and secures the network.
What it is used for
Developers build apps on it because it is cheap and fast enough for everyday use. Traders use it because moving in and out costs almost nothing. Holders lock up SOL to help run the network and earn a return for doing so. Increasingly, institutions hold it through regulated funds.
Why it stands out
The case for it
- Regulated funds arrived and money followed. Spot Solana funds launched in late 2025 and total assets passed a billion dollars, with major names including Fidelity and Bitwise running products and further filings pending.
- A public company made it a treasury asset. A Nasdaq-listed firm has accumulated more than 6.9 million SOL and runs its own validator, which is a very different kind of holder from a speculator.
- The performance argument is not theoretical. Fees of a fraction of a penny and near-instant settlement are the reason developers keep choosing it, and that has held through several market cycles.
- It is closing the gap on the incumbent. Solana has been narrowing the valuation difference with the largest smart-contract network for several years, and the direction of travel has been consistent.
- Real assets are moving onto it. Tokenised company shares and other regulated instruments have begun settling on the network, which is a use case with an obvious institutional customer.
What to watch
Things to keep an eye on
- Speed has historically come at the cost of reliability. The network has suffered outages in its past, and any repeat would undermine exactly the argument that makes it attractive.
- A large share of supply sits with early backers and insiders. That concentration means selling decisions by a small number of holders can move the price disproportionately.
- Its main use is still trading. A great deal of activity is speculation rather than the everyday applications the speed is meant to enable, and if trading interest fades the activity numbers fade with it.
How it scored when written
Key figures
About the Base layer networks sector
A base layer network is the foundation everything else is built on. It keeps the record of who owns what, and it is maintained by thousands of independent computers rather than one company. Because no single party controls it, changing the rules requires broad agreement, which makes these networks slow to change but very hard to shut down.
These are the assets institutions reach for first. They have the longest track records, the deepest trading, and the clearest regulatory position, which is why exchange-traded funds arrived here before anywhere else. When money leaves crypto it usually leaves everything except these; when it returns, it usually arrives here first.
What to watch: Whether the money arriving through regulated funds keeps arriving, since that has become the main source of demand. Also how much of the network's value depends on adoption versus on interest rates and the wider mood in markets.
What we could not verify
The 100% above means every metric the score uses resolved cleanly. Separately, these cannot be measured from free public sources at all, so they sit outside the model rather than being estimated.
Others in this sector
Other reports
Frequently asked
What is Solana used for?
Developers build apps on it because it is cheap and fast enough for everyday use. Traders use it because moving in and out costs almost nothing. Holders lock up SOL to help run the network and earn a return for doing so. Increasingly, institutions hold it through regulated funds.
Is Solana a good investment?
We do not give investment advice. Solana scores 9.3 of 10 for Quality and 3.8 for Risk on 100% verified data. The bull case and the risks are both set out above so you can weigh them yourself.
What should I watch with Solana?
Speed has historically come at the cost of reliability. The network has suffered outages in its past, and any repeat would undermine exactly the argument that makes it attractive. A large share of supply sits with early backers and insiders. That concentration means selling decisions by a small number of holders can move the price disproportionately.
What is the Base layer networks sector?
A base layer network is the foundation everything else is built on. It keeps the record of who owns what, and it is maintained by thousands of independent computers rather than one company. Because no single party controls it, changing the rules requires broad agreement, which makes these networks slow to change but very hard to shut down.
How has Solana performed since this report?
Since publication on 1 September 2026, SOL has moved +0.6%. We show this regardless of direction.
Not financial advice. These are assets that score well on our framework, so the report leads with why. It also sets out what to watch, because a report that only tells you good news is not worth reading. It is not a recommendation, and it takes no account of your circumstances. Scores are the mechanical output of a published framework applied to public data. Digital assets are volatile and you may lose everything you put in. Verify all figures independently.