Why is Solana cheaper than Ethereum?

Solana processes transactions in parallel and uses a different consensus mechanism, which lets it support thousands of transactions per second at fees typically well under a cent.

Solana has experienced periods of network congestion and outages, but no major security exploits at the consensus level. It's secured by a global validator set staking SOL.

Solana (SOL)

High-throughput Layer 1 designed for low-cost transactions.

Open in screener

Category: Smart contracts · Layer 1
Launched: 2020
Founders: Anatoly Yakovenko, Raj Gokal
Consensus: Proof of Stake with Proof of History

About Solana

Solana is a high-performance Layer 1 blockchain known for its very fast block times and low transaction fees. It uses a unique combination of Proof of Stake and a novel mechanism called Proof of History to order transactions efficiently.

The network has become a hub for consumer-facing crypto applications including DePIN projects, on-chain games, and meme tokens. SOL is the native asset used for paying transaction fees and securing the network through staking.

What is SOL used for?

High-frequency DeFi trading
On-chain consumer applications
NFT minting at low cost
Staking rewards

Solana FAQ

Why is Solana cheaper than Ethereum?: Solana processes transactions in parallel and uses a different consensus mechanism, which lets it support thousands of transactions per second at fees typically well under a cent.
Is Solana secure?: Solana has experienced periods of network congestion and outages, but no major security exploits at the consensus level. It's secured by a global validator set staking SOL.

Disclaimer: The content on this page is for educational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile. Always do your own research and never invest more than you can afford to lose. See our methodology for details on how we generate analysis.