Solana Price Chart

Solana is a layer-1 blockchain network that enables the creation of decentralized applications. Solana improves on the bottlenecks and challenges faced by earlier-generation networks such as Bitcoin and, especially, Ethereum. 

The Solana project introduced novel improvements, such as a Proof-of-History (PoS) consensus protocol and localized free markets. However, its primary appeal is its focus on scaling blockchain at the base layer.

Unlike its predecessor, Ethereum, which prioritizes scaling via layer-2 networks, Solana imbibes a monolithic approach. This means that all user transactions, irrespective of use case, settle on one blockchain rather than multiple networks. 

A Brief History of Solana

The Solana blockchain launched in March 2020. Before then, the project had originally existed as Loom but had to rebrand as Solana to prevent a collision with Loom Network, an Ethereum-based project that shared a similar name.

Following its launch, Solana gained remarkable traction thanks to its affiliation with the then-popular exchange FTX. The network attracted a significant number of developers and users and eventually became one of Etheruem’s biggest competitors.

However, Solana had perhaps its most trying moment in history following the infamous collapse of the FTX exchange in 2022. News of the collapse its fears around its potential impact on the Solana ecosystem, caused the price of SOL to crash to as low as $8, a significant increase from its previous all-time high of $260.

Meanwhile, the Solana ecosystem eventually overcame the FTX adversity. The project’s ecosystem has since expanded to include the project’s flagship smartphone, known as the Saga.