About Solana (SOL)
Solana is a high-throughput blockchain network launched in 2020, designed with a key focus on transaction speed. Its architecture combines a unique Proof of History (PoH) timing mechanism with Proof of Stake consensus, enabling the network to theoretically process thousands of transactions per second with sub-second finality and fees that typically amount to fractions of a cent.
That speed has made Solana a key platform for hosting decentralised finance (DeFi) protocols, NFT marketplaces, and consumer-facing applications that need fast, cheap transactions to function at scale. The current SOL/AUD exchange rate is displayed live on this page. In Australia, individuals can purchase Solana using AUD through PayID transfers on AUSTRAC-registered platforms like Swyftx.
What makes Solana different from other blockchains
Most smart contract platforms must consider a trade-off between speed, cost, and decentralisation. Solana's Proof of History mechanism attempts to address this problem – known as the blockchain trilemma – by creating a verifiable sequence of time-stamped events before consensus, allowing validators to process transactions in parallel rather than sequentially.
The theoretical result is a network capable of handling high throughput at low cost, which has attracted developers building applications in DeFi, gaming, payments, and NFTs. The trade-off has historically been periodic network congestion during extreme demand spikes, which the development team has addressed through successive upgrades.
What drives Solana's price?
Network activity and developer adoption
Solana's prominence in the DeFi space is tied directly to how much its network is used. Growth in DeFi total value locked (TVL), active wallet addresses, and the number of deployed applications can serve as indicators of demand for SOL, since every transaction on the network requires SOL to pay fees.
Supply mechanics
SOL operates with an inflationary supply model. New tokens are issued as staking rewards, with the inflation rate declining annually toward a long-term floor. A portion of transaction fees are permanently burned, introducing a counterbalancing deflationary pressure that increases during periods of heavy network usage.
Macro and market sentiment
As a globally traded asset, SOL can be sensitive to macroeconomic indicators, investor appetite for technology-adjacent assets, and developments within the broader cryptocurrency market.
How to store Solana
After purchasing SOL, investors must decide on a storage method. Assets can remain on a regulated custodial exchange or be withdrawn to a compatible wallet such as Phantom or Solflare for direct ownership. For more information on self-custody options, refer to our crypto wallet guide.
