A comprehensive analysis from crypto data and research leader Messari has unveiled the performance dynamics within the Solana (SOL) ecosystem throughout the third quarter of 2024. The findings reveal a blend of growth opportunities and hurdles for the blockchain amidst the broader turbulence in the cryptocurrency markets during this timeframe.
Solana’s DeFi TVL and Stablecoin Market Cap Witness Growth
In a notable achievement, Solana’s Total Value Locked (TVL) in decentralized finance (DeFi) surged by 26% quarter-over-quarter (QoQ), reaching an impressive $5.7 billion. This ascent has positioned Solana as the third-largest network in terms of DeFi TVL, surpassing Tron by the close of September. Moreover, when denominated in SOL, the TVL also experienced a 20% QoQ increase, amounting to 37 million SOL.
Kamino’s Influence in the Solana Ecosystem
Kamino has emerged as a pivotal entity within the Solana landscape, marking a 57% escalation in TVL and concluding the quarter with a formidable $1.5 billion, thus capturing a 26% market share. This growth can be attributed to the integration of new tokens, notably PayPal’s USD (PYUSD) and jupSOL, which have significantly bolstered the platform’s allure.
Despite these positive developments, decentralized exchange (DEX) volume experienced a slight dip, mirroring a decline in memecoin trading activities. The average daily spot DEX volume decreased by 10% QoQ to $1.7 billion. The waning interest in memecoins was apparent, with only two tokens—WIF and POPCAT—entering the top ten by trading volume during the quarter.
Resilience in Solana’s Stablecoin Ecosystem
In contrast, Solana’s stablecoin ecosystem demonstrated resilience, with the market cap for stablecoins ascending by 23% QoQ to $3.8 billion. This achievement secures Solana’s position as the fifth-largest network in the stablecoin category.
Challenges in the NFT Sector
On the non-fungible token (NFT) front, the outcome was less favorable. The average daily NFT volume declined by 27% QoQ to $2.5 million. Magic Eden maintained its dominant market share despite witnessing a 44% drop in volume.
Thriving Network Activity Amidst Challenges
Amid these challenges, the number of funding rounds for Solana ecosystem projects diminished by 37% QoQ, with only 29 projects announcing funding. Nonetheless, the total amount raised surged to $173 million, reflecting a 54% QoQ increase, marking the highest quarterly funding since Q2 2022.
Robust Network Engagement
Network activity thrived, as indicated by a 109% increase in average daily fee payers, which climbed to 1.9 million. Furthermore, the average daily new fee payers soared by 430% QoQ to 1.3 million, signifying an expanding user base.
The average transaction fee on Solana saw a 6% QoQ rise to 0.00015 SOL (approximately $0.023), while the median transaction fee fell by 19% to 0.000008 SOL (around $0.0013).
Market Capitalization and Real Economic Value
As of mid-October, Solana’s market capitalization experienced a 5% QoQ increase, reaching $71 billion, thereby maintaining its rank as the fifth-largest cryptocurrency, trailing only behind Bitcoin, Ethereum, Tether, and Binance Coin. However, the Real Economic Value (REV) of Solana, which tracks transaction fees and miner extractable value (MEV) for validators, declined by 25% QoQ to 1.3 million SOL (approximately $196 million), with 56% of this sum derived from transaction fees.
At the time of writing, SOL was valued at $166, representing a 5% dip over the past week.
