As a seasoned crypto investor with a knack for spotting promising trends, I find Solana’s recent surge particularly intriguing. Having navigated through the crypto landscape since its inception, I have witnessed the ebb and flow of various projects, and Solana seems to be carving out a unique niche for itself.
Solana’s decentralized finance (DeFi) is seeing a resurgence amidst a broader market rally.
As reported by DeFiLlama, Solana’s decentralized trading platforms (DEXs) have broken a record, managing daily trades exceeding $5 billion for three consecutive days. This is a groundbreaking achievement as it’s the first instance of this happening.
From November 10th through November 16th, the combined trading volume of Solana Decentralized Exchanges (DEXs) was approximately $16 billion. A significant portion of this increase can be attributed to Raydium, a prominent DEX on Solana, which accounted for more than 62% of the total trading volume. Orca, another well-known exchange, followed closely with 22.2%, while market makers Lifinity and Phoenix each captured 6.96% and 4.92% of the total trading volume, respectively.
What’s Fueling Solana?
According to Syncracy Capital’s latest findings, Solana is swiftly closing the gap with Ethereum. By 2024, it’s anticipated that Solana will see a boost in its market share revenue. Remarkably, Solana’s Real Economic Value (REV) reached 111% of Ethereum’s in October, a significant leap from just 1% a year ago. This surge is primarily due to transaction fees and MEV rewards.
The crucial measurement called Total Application Revenue (TAR) also displayed robust results, surpassing Ethereum’s TAR by 9%, demonstrating the increasing income from applications operating on Solana’s blockchain network, due to the growing transaction fees it generates.
It’s clear now, not just a guess, that Solana is taking a larger piece of the market from Ethereum. This shift has been supported by strong trends in the industry over the last year, making Solana a popular choice for retail financial transactions.
On Solana’s financial front, there’s been a significant increase in on-chain transactions, with meme coins serving as the main focus. Users are exploring options beyond traditional venture-backed assets and expensive tokens, looking for something new. This trend mirrors the DeFi explosion on Ethereum in 2020, according to the report.
Syncracy Capital expressed that this is an excellent opportunity for developers to construct projects on Solana. For instance, Pump.fun, a notable application in the crypto world, swiftly achieved $100 million in income within 217 days, making it the fastest-growing app in crypto history. At present, the meme coin launcher’s projected annual revenue stands at an impressive $348 million, placing it at the top of the industry in terms of generating revenue.
DePIN on Solana
Through DePIN sector, Solana has seen significant growth beyond DeFi, by pooling infrastructure expenses among many and employing on-chain transactions for smoother and more scalable operations, resulting in increased efficiency.
Examples like Hivemapper, which has affordably mapped about a quarter of the world’s roads, and Helium, boasting a 20,000-unit network that supports American telecommunications companies, showcase the significant influence this sector is having.
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2024-11-14 23:22