What is Solana? A Beginner’s Guide to SOL in Australia

What is Solana? Solana is a high-performance blockchain designed for speed and low costs. Launched in 2020 by Anatoly Yakovenko, a former Qualcomm engineer, Solana was built to solve one of the biggest challenges in crypto: making blockchain technology fast enough and cheap enough for everyday use.

While blockchains like Bitcoin and Ethereum process a limited number of transactions per second, Solana was engineered from the ground up to handle thousands. This makes it popular for applications where speed matters, from decentralised finance (DeFi) and NFT marketplaces to gaming and payment systems.

SOL is the native cryptocurrency of the Solana network. It’s used to pay transaction fees, participate in staking, and power applications built on the platform. Solana has grown to become one of the most widely used blockchains in crypto.

Solana at a glance (last updated April 2026) 

Price: ~$122 AUD  |  Market cap: ~$70 billion AUD  |  Circulating supply: ~575 million of 624 million total 

How Does Solana Work?

Solana takes a different technical approach to most blockchains, and that’s what makes it fast.

Proof of History. Solana’s key innovation is a mechanism called Proof of History (PoH). Traditional blockchains need validators to communicate back and forth to agree on the order and timing of transactions. Solana’s PoH creates a built-in clock that timestamps transactions before they’re processed, so validators already know the order. This simple idea dramatically speeds things up.

Proof of Stake. On top of PoH, Solana uses Proof of Stake (PoS) for security. Validators stake their SOL tokens as collateral to participate in verifying transactions. If they act dishonestly, they lose their staked tokens. This keeps the network secure without needing energy-intensive mining.

Speed and cost. Solana can theoretically process tens of thousands of transactions per second with sub-second finality, and transactions typically cost fractions of a cent. For comparison, Ethereum’s base layer processes around 15 transactions per second and fees can spike during busy periods.

Validators. The Solana network is maintained by thousands of validators spread across the globe who run specialised software to process transactions. Anyone with the technical know-how and hardware can become a validator, contributing to the network’s decentralisation.

Programs (smart contracts). Like Ethereum, Solana supports smart contracts (called “programs” in Solana’s terminology). Developers can build decentralised applications on Solana, from token exchanges to lending platforms to games. 

A Brief History of Solana

Solana’s rise from a technical whitepaper to a top-tier blockchain has been one of the fastest in crypto history.

2017: The idea. Anatoly Yakovenko, drawing on his experience at Qualcomm and Dropbox, published a whitepaper describing Proof of History, a new approach to ordering transactions that could dramatically increase blockchain speed. He partnered with Greg Fitzgerald and Raj Gokal to begin building what would become Solana.

2020: Mainnet launch. Solana’s mainnet beta went live in March 2020. Even in its early days, the network demonstrated the speed and low costs that would become its signature, attracting developers looking for an alternative to Ethereum’s congestion and high fees.

2021: The breakout year. Solana exploded in popularity. The SOL token surged from under US$2 at the start of the year to an all-time high near US$260 by November 2021. The ecosystem grew rapidly, with DeFi, NFT, and gaming projects launching on the network. Solana became widely recognised as a serious competitor to Ethereum.

2022-2023: The tough stretch. The crypto bear market hit Solana hard, and the collapse of FTX (a major Solana backer) in late 2022 raised questions about the network’s future. SOL’s price dropped below US$10. The network also experienced several outages that drew criticism about its reliability. But development continued, and the community stayed active.

2024: The comeback. Solana came back stronger. The network processed over 62 million daily non-vote transactions in Q3 2024 with 1.9 million unique fee payers every day. Total Value Locked surged from US$1.4 billion in January to over US$9.4 billion by December, a 572% increase. Jump Crypto’s Firedancer client went live on mainnet after three years of development, building towards the goal of one million transactions per second.

2025: Institutional recognition. SOL hit a new all-time high of US$294 in January 2025. Multiple major asset managers, including Fidelity and Grayscale, filed for spot Solana ETFs in the US. The Alpenglow consensus upgrade proposal, which aims to slash transaction finality from around 12 seconds to 150 milliseconds, passed a validator vote with 98% approval and is targeted for mainnet in 2026.

Where things stand today. Solana is one of the most actively used blockchains by transaction count and unique users. With continued infrastructure upgrades and growing institutional interest, it has firmly established itself as one of the major players in the crypto ecosystem.

Why Do People Buy Solana?

Speed and low fees. Solana’s technical architecture makes it one of the fastest blockchains available, and transactions cost fractions of a cent. For users who actively transact, trade, or use DeFi applications, this makes a meaningful difference compared to blockchains with higher fees.

A thriving ecosystem. Solana hosts a diverse and rapidly growing ecosystem of applications. From major DeFi protocols like Raydium and Marinade to NFT marketplaces, gaming projects, and payment platforms, the range of things you can do on Solana continues to expand.

Staking rewards. SOL holders can stake their tokens to help secure the network and earn rewards in return. Solana’s staking is straightforward and accessible, with typical yields that make it attractive for long-term holders.

Developer momentum. Solana has one of the fastest-growing developer communities in crypto. The Solana Foundation actively supports builders through grants, hackathons, and education programs. More developers building means more applications, which drives more users and demand for SOL.

Institutional interest. The filing of multiple spot Solana ETF applications signals that institutional investors see Solana as a serious, long-term asset. If approved, ETFs would open SOL to a much wider pool of capital.

Accessibility. You don’t need to buy a whole SOL. You can purchase a fraction, even just $10 worth, through an Australian exchange like Digital Surge.

Is Solana Safe?

The network is young but improving. Solana experienced several outages in its early years, which raised valid concerns about reliability. Since then, the team has invested heavily in infrastructure improvements, including the Firedancer validator client, which provides a completely independent codebase to improve network resilience.

Proof of Stake security. Solana’s PoS system means attackers would need to acquire a massive amount of staked SOL to compromise the network, making attacks economically impractical as the network grows.

Use a reputable exchange. Buying and holding SOL on a trusted Australian exchange like Digital Surge, which is registered with AUSTRAC and offers two-factor authentication (2FA) and cold storage, is the safest approach for beginners. Be cautious with newer or unaudited DeFi applications on any blockchain.

Volatility applies. SOL’s price can be volatile. The token has seen dramatic swings in both directions. Only invest what you’re comfortable holding through market cycles.

Solana and Tax in Australia

In Australia, the ATO treats Solana and other cryptocurrencies as property for tax purposes, not currency. This means: 

Capital gains tax (CGT) applies when you sell, trade, or exchange SOL. If you hold for more than 12 months, you may be eligible for a 50% CGT discount.

Staking rewards are taxable income. If you earn SOL through staking, those rewards are considered ordinary income at the time you receive them, valued at the market price on the day of receipt.

Buying and holding is not a taxable event. You only trigger a tax obligation when you dispose of your SOL.

Keep records. Track your purchase price, date, sale price, and any fees. Digital Surge provides transaction history that makes this easier, and you can connect your account to crypto tax tools like CoinTrack to automate the process. 

How to Buy Solana in Australia

Buying Solana in Australia is straightforward with the right platform. Here’s how it works on Digital Surge: 

1. Sign up. Create your free account in minutes. You’ll need to verify your identity (a standard KYC requirement under Australian law). It’s quick and secure. 

2. Deposit AUD. Transfer Australian dollars to your account via bank transfer, PayID, or other supported payment methods. There are no deposit fees on Digital Surge. 

3. Buy Solana. Search for SOL, enter the amount you’d like to buy and confirm your purchase. You can buy as little as $10 worth. 

4. Hold or transfer. Your Solana is safely stored in your Digital Surge account, or you can transfer it to your own personal wallet if you prefer to self-custody. 

Creating an account only takes a few minutes, claim your bonus SOL here

Frequently Asked Questions

Is Solana legal in Australia?

Yes. Solana is legal to buy, sell, and hold in Australia. Cryptocurrency exchanges operating in Australia must be registered with AUSTRAC and comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. Digital Surge is fully registered and compliant.

What’s the difference between Solana and Ethereum?

Both are smart contract platforms, but they take different approaches. Ethereum prioritises decentralisation and security, while Solana prioritises speed and low costs. Ethereum has a larger ecosystem and longer track record. Solana offers faster transactions and lower fees. Many investors hold both, as they serve complementary roles in the crypto space.

What is Proof of History?

Proof of History is Solana’s unique innovation. It creates a cryptographic timestamp for each transaction before it’s processed, so validators already know the order of events without needing to communicate back and forth. This is what allows Solana to achieve its high speed.

Has Solana had outages? 

Yes. In its early years, Solana experienced several network outages caused by congestion and software bugs. These were genuine growing pains. Since then, significant engineering effort has gone into improving reliability, including the launch of the Firedancer validator client, a completely independent implementation that improves network resilience.

Can I lose money with Solana? 

Yes. SOL’s price is volatile and can go down as well as up. SOL has experienced some of the sharpest drawdowns in crypto, including a 96% decline during the 2022 bear market (though it has since recovered and surpassed its previous highs). Only invest what you’re comfortable potentially losing.

How do I store Solana safely? 

The safest approach for beginners is to use a reputable Australian exchange like Digital Surge that offers strong security features including 2FA and cold storage. As you become more experienced, you may choose to transfer Solana to a personal hardware wallet for self-custody.