Solana Dominates the Altcoin Space in 2023

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By A D

Amidst a year of fluctuations in the crypto market, Solana(SOL)’s total value locked (TVL) achieved a notable milestone, reaching $338.21 million. The total value locked (TVL) in the Solana ecosystem has surged by a staggering 61% since the beginning of the year. This metric measures the total amount of assets locked in DeFi protocols and projects on the Solana blockchain. Once considered a casualty of the bear market, Solana has proven its mettle and now looks set to outperform its peers during the upcoming bull market. 

Solana’s journey began with a dramatic fall in its price, plummeting from a remarkable $250 to a mere $10 when its biggest supporter, FTX, faced a major setback. This steep drop made it appear as if Solana was on its last legs. However, a closer examination unveils a different outlook.

Solana (SOL) price and TVL chart
The FTX collapse hit SOL hard, as it went from $250 to $10. Image Source: DefiLama

Solana’s Resilience: Active Addresses, TVL & Price Rebound

Throughout 2023, SOL maintained an impressive level of approximately 300,000 daily active addresses. This number puts Solana on par with blockchain giants like Ethereum and Polygon, signifying a robust and active user base. Even more promising is the fact that Solana ranks among the top four cryptocurrencies in terms of daily fees generated. This consistent revenue generation is a positive sign for the blockchain’s sustainability.

SOL managed to break free from a downtrend that had been restraining its price. The result? A major rally that catapulted the price of SOL by more than 25% in just one week. SOL’s price has surged by almost 150% since the beginning of the year, catapulting it back into the top 10 on CoinMarketCap. 

the top 10 crypto on cmc
SOL currently ranks 7th on CMC top ten. Image Source: CoinMarketCap

A Thriving Developer Ecosystem on Solana

Solana’s developer ecosystem is thriving, boasting a substantial number of full-time developers that rank fourth among all blockchains as of June 1st. 

One significant milestone is the introduction of Solang, a compiler that simplifies the process of building on Solana for Ethereum developers. This bridging of two major ecosystems opens the door for an influx of Ethereum dApps to migrate to Solana, potentially expanding its influence.

Remarkably, the blockchain has maintained 100% uptime since the beginning of the year, effectively eliminating one of its historical pain points. Features like state compression have made data storage on Solana highly cost-effective.

Solana developer growth chart, year to year
The growth in the Solana developer community. Image Source: DefiLlama

The network’s management remains decentralised, with 1,850 independent validators and 925 RPC nodes supporting its infrastructure.

The Nakamoto coefficient, a measure of decentralisation, stands at an impressive 33. Solana’s broad adoption is evident with 2,053 open-source developers actively contributing to the ecosystem.

Solana Ecosystem Projects

Solana’s ecosystem is brimming with groundbreaking projects. In the DeFi space, Judo offers liquid staking with Mev boosting. Margin Phi and Cipher show promise in terms of liquidity metrics, making them noteworthy contenders.

GameFi, a niche where Solana has invested a $150 million fund, is showing signs of life. Games like Monkey League, Clayscape, and Blade have already gone live, with highly anticipated titles such as Star Atlas and Br1 Infinite on the horizon. These games promise AAA-quality experiences, potentially disrupting the gaming industry.

Solana is uniquely positioned to capitalise on the emerging DePIN (decentralised physical infrastructure networks) niche. Projects like Helium, which migrated to Solana, aim to improve physical networks such as wireless connectivity. Solana’s speed and low fees make it an ideal choice for such applications.

decentralised physical infrastructure networks- aided by solana blockchain
Image Source: SubStack

Neon EVM

One of the most eagerly awaited developments is the Neon EVM, which went live in July. This significant milestone enables Ethereum-based applications to operate seamlessly on the Solana blockchain. The integration of Neon EVM not only widens Solana’s ecosystem but also positions it as a formidable competitor to Ethereum and other Layer 1 blockchains.

Neon EVM by Solana
Solana’s Ethereum Virtual Machine for seamless app integration. Image Source: SubStack

EUROe: Solana’s First Euro Stablecoin

Membrane Finance launches EUROe, Solana’s first native Euro stablecoin. This stablecoin complies with MiCA, the European Markets in Crypto Assets, set to take effect in 2024. Users can create and redeem EUROe at a 1:1 ratio with the Euro, making it a fee-free and compliant choice for Euro-backed transactions.

EUROe is Europe's stablecoin powered by Solana
EUROe is all set to be fully functional in 2024. Image Source: CoinMarketCap

Maple Returns to Solana

Maple Finance, a treasury management solution, is returning to Solana with a mission to provide yield backed by US Treasury Bills. Their Cash Management Solution, designed for DAOs and Web3 Treasuries on Solana, offers conservative yields on idle capital. This move is poised to make treasury management on Solana more efficient and attractive, with the launch expected in early September.

Ultra-Low-Cost Compressed NFTs

August witnessed an extraordinary NFT minting frenzy on Solana, with a spotlight on its ultra-low-cost Compressed NFTs. These compressed NFTs achieved a mind-boggling minting volume, surpassing 15.6 million in number, all while incurring a mere 82 SOL in fees. This remarkable feat not only set a new record but also underscored Solana’s remarkable ability to handle NFTs efficiently.

a graph of solana NFT minting activity
Over 15.6 Million Compressed NFTs Minted on Solana. Image Source: The Block

As of now, Solana proudly boasts nearly 78 million compressed NFTs, surpassing their non-compressed counterparts. These compressed NFTs make up a substantial 55.62% of the total NFT count within the Solana ecosystem. What’s more, they play a pivotal role, accounting for a remarkable 21.5% of Solana NFTs’ monthly sales volume in the bustling month of August. This surge in minting activity is a testament to the thriving and vibrant NFT community that has found its home on Solana.

Singular Consumer Focus

Solana has set itself apart by targeting real-world consumers with the Saga smartphone. This premium Android device boasts innovative features like Seed Vault, offering secure management of private keys and effortless transaction signing through fingerprint sensors.

Solana Labs has launched a chat GPT plugin, enabling users to perform various on-chain activities seamlessly. Additionally, integration with the Brave browser enhances Solana’s accessibility, allowing users to browse censorship-resistant websites. The blockchain project broadens its horizons with a $10 million AI grant fund.

Read: Solana Labs’ ChatGPT plugin allows AI to fetch blockchain data

chatgpt with solana plugin
Solana on-chain activities aided by the chatGPT plug-in. Image Source: github

Solana envisions a future where user-friendly interactions with dApps are facilitated through DOT souls and AI-driven on-chain tasks. This unique consumer-focused approach sets Solana apart in the crypto landscape.

SOL Price Predictions

To gauge Solana’s future potential, we can draw parallels to Ethereum’s performance. During the last cycle, Ethereum faced a drop of over 90%, plummeting to $80, only to achieve a remarkable 50x surge to over $4,000. Applying a similar pattern to Solana, with a low of $10 during this bear market, it could reasonably experience a 30x increase to reach $300. Even at the current price of approximately $25, there is the potential for a 15x increase. 

Ethereum price chart
ETH fell 90% to $80, later surging exponentially to over $4000. Image Source: CoinDesk

As Solana continues its upward trajectory, it’s essential to keep an eye on key support and resistance levels. The $22 and $20 marks serve as crucial support levels, providing a safety net for the cryptocurrency. On the other side, the $25 and $28 levels represent formidable resistance points, signifying hurdles that SOL must overcome to reach new highs.

Solana price chart
SOL is treading crucialsupport levels now, which are vital to its price projections. Image Source: CoinDesk

Solana’s Relative Strength Index (RSI) has been breaking records, surpassing the 70 level and continuing its ascent towards 80. This surge in RSI indicates that SOL is currently in overbought territory, underlining the strong demand and bullish sentiment surrounding the coin. 

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