🔍 Introduction
If you’ve been involved in the crypto world you likely have heard the terms SOL, Solana tokens, and all the variations of those two terms. Are they interchangeable or synonymous? Not exactly.
In this guide we will breakdown:
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What SOL is
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What Solana tokens are
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Why understanding the distinction is important — especially if you are trading, investing, or building in the Solana ecosystem
💠 What is SOL?
SOL is the native cryptocurrency of the Solana blockchain that powers the entire Solana network.
It is used for:
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Paying transaction fees
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Staking & earning rewards
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Participating in governance (in the future)
In the Solana ecosystem, SOL serves a similar role as ETH on Ethereum.
It can be used to:
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Pay gas fees
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Access staking
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Engage with everything else happening on Solana
🔹 A few fast facts on SOL:
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Ticker: $SOL
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Total Supply: ~560 million (as of 2025)
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Inflationary with controlled burn
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Tradable on most major exchanges
🪙 What Are Solana Tokens?
Solana tokens are other cryptocurrencies that operate on top of the Solana network.
They are not the SOL coin itself, but simply assets that utilize Solana’s infrastructure to exist, function, and transfer.
They are minted using the SPL token standard (Solana Program Library) — the Solana equivalent of Ethereum’s ERC-20 tokens.
🧬 Solana tokens come in a few different forms:
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Utility Tokens – i.e., RAY (Raydium) and JUP (Jupiter Exchange)
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Governance Tokens – i.e., MNDE (Marinade Finance)
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Stablecoins – i.e., USDC, USDT on Solana
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Meme Tokens – i.e., BONK, WIF
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NFT-based Tokens – i.e., attached to games or digital collectibles
It is important to note that Solana tokens can be used for various purposes depending on their tokenomics:
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Swap on DEXs
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Stake
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Vote on governance proposals
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Hold for speculation
⚖️ The Differences: SOL vs Solana Tokens
| Feature | SOL (Native Token) | Solana-Based Tokens (SPL) |
|---|---|---|
| Role | Fuel for the Solana network | Each will serve a specific purpose on the project |
| Creation | Integrated within the protocol | The creator will use SPL smart contracts to mint their token |
| Use Cases | Fees, staking, rewards for validators | Their utility, governance, gaming, etc. |
| Supply Control | Protocol can decide the supply | Once created, creators decide how to control the supply |
| Example | $SOL | $BONK, $RAY, $JUP, $WIF |
📌 Why This Matters to You
Grasping the difference is not simply a technical exercise —
it has implications for how you trade, invest, and manage your portfolio.
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Fees: You will always need SOL to transact with any token on Solana. No SOL? No transaction.
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Investment Risk: SPL tokens have projects associated with them that can succeed or fail; SOL is an established asset.
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Utility: Some SPL tokens will only be useful inside a game or application; SOL stands to be useful for the entire ecosystem.
So when you are new to Solana, do not just chase meme tokens under the assumption they are all equal — know what you are buying.
🪙 Which Ones Should You Hold?
It depends on your objectives:
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Do you want stability?
Generally, your best bet is SOL — it is widely adopted with significant inherent utility. -
Are you looking for high risk, high reward?
Certain Solana tokens may present an exponential gain opportunity, however you are taking on a much higher risk. -
Are you building, or using, dApps?
You will need both — SOL for fees and SPL tokens for utility.
🧠 Conclusion
Within the fast-paced ecosystem that is Solana, it can be easy to get lost amongst the noise.
However, taking the time to learn the basics (the difference between SOL and other Solana tokens, etc.) can give an edge as a user or an investor.
Whether you are simply setting up your Phantom wallet or getting deeper into DeFi yield farms,
it is key to know what kind of token you are holding.
