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Tag: Solana blockchain

  • From Store Of Value To DeFi Powerhouse: Solana Unlocks Bitcoin’s True Utility — Here’s How

    Bitcoin has been celebrated as digital gold and a secure store of value with limited functionality, but Solana’s high-speed, low-cost blockchain is changing that narrative. By bridging BTC into SOL’s DeFi ecosystem, BTC gains instant settlement, programmable use cases, and access to lending, borrowing, and yield opportunities.

    The best form of Bitcoin is literally on Solana, citing the network’s ability to transform BTC from a static store of value into a dynamic, productive asset. Solana Sensei, the Founder of Sensei holdings and Namaste group, has highlighted on X that 66% of all wrapped Bitcoin (wBTC) traders are on the Solana network. He supports this claim with the reasons why people are choosing to hold and use their BTC on SOL.

    Why Solana’s Speed And Low Fees Change The Game

    Solana is extremely cheap in transactions, a stark contrast to the $5 to $50+ fees often seen on the Bitcoin or Ethereum networks for the same move. With transaction finality in approximately 400 milliseconds, BTC transfers on SOL become nearly instant, compared to the minutes or hours of waiting on other chains. SOL’s capacity to process 65,000 TPS allows it to handle BTC at an internet-scale without network congestion.

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    Furthermore, Bitcoin becomes a programmable asset with deep integration into DeFi protocols like Jupiter, Raydium, Orca, Drift, and Kamino, enabling instant trading, lending, and use as collateral. Also, BTC becomes programmable in SOL DeFi, NFT, and RWAs, without the need for bridges across multiple chains.

    This integration transforms BTC into a dynamic, productive asset that can be used for lending, staking, and liquidity provision or structural products in ways that are not possible on the native BTC chain. BTC custody solutions, such as tBTC, sBTC, or the Wormhole BTC, combined with SOL’s high validator count and Jito MEV protection, are making it secure to use BTC on the network.

    Bitcoin on SOL pairs with USDC and USD1, which are the stablecoins that dominate settlement volume across all chains. With products like the SOL Mobile Saga and Seeker, there are instant BTC swaps and BTC payments on mobile. As the focus on SOL increases, the network is becoming a hub for ETFs and RWAs, with institutional flows ramping up. Meanwhile, Wrapped BTC on SOL will be directly plugged into that liquidity.

    Earning Native Bitcoin on Solana Through mSOL

    Analyst CPrinz, the on-chain Researcher, has revealed a new partnership between Marinade, SOL’s leading staking platform with 10 million and $1.7 billion in total value locked, and Zeus Network. 

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    Specifically, the collaboration is designed to expand the utility of Marinade liquid staked SOL token, mSOL, by enabling users to earn native BTC on the SOL blockchain. Also, this partnership unlocks new opportunities across DeFi, marking a major step forward for cross-chain innovation.

    SOL trading at $221 on the 1D chart | Source: SOLUSDT on Tradingview.com

    Featured image from Unsplash, chart from Tradingview.com

    Godspower Owie

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  • Solana Q3 Digest: Total Value Locked Hits $5.7 Billion, Ranks Third Among Networks

    Solana Q3 Digest: Total Value Locked Hits $5.7 Billion, Ranks Third Among Networks


    Este artículo también está disponible en español.

    A recent report from crypto data and research firm Messari has shed light on the performance of the Solana (SOL) ecosystem during the third quarter of 2024. The report highlights a mixture of growth and challenges faced by the blockchain amid broader volatility in the cryptocurrency market during that period.

    Solana Stablecoin Market Cap Rises To $3.8 Billion

    One of the standout metrics from the report is the growth of Solana’s Total Value Locked (TVL) in decentralized finance (DeFi), which rose by 26% quarter-over-quarter (QoQ) to reach $5.7 billion. 

    This growth positioned Solana as the third-largest network in terms of DeFi TVL, surpassing Tron in late September. Notably, the TVL denominated in SOL also increased, growing by 20% QoQ to 37 million SOL.

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    Solana’s Q3 TVL growth. Source: Messari

    Kamino emerged as a leading player within the Solana ecosystem, experiencing a 57% growth in TVL, ending the quarter with $1.5 billion and capturing a 26% market share. This surge is attributed to the integration of new tokens, including PayPal’s USD (PYUSD) and jupSOL, which have enhanced the platform’s appeal.

    Despite the overall positive trends, decentralized exchange (DEX) volume experienced a slight decline, reflecting a downturn in memecoin trading. Average daily spot DEX volume fell by 10% QoQ to $1.7 billion. 

    Per the report, the diminishing interest in memecoins was evident, as only two tokens—WIF and POPCAT—managed to make it into the top ten by trading volume for the quarter.

    In contrast, Solana’s stablecoin ecosystem showed resilience, with the market cap for stablecoins growing by 23% QoQ to $3.8 billion, solidifying its rank as the fifth-largest network in this category. 

    On the non-fungible token (NFT) front, however, the performance was less favorable. Average daily NFT volume fell by 27% QoQ to $2.5 million, with Magic Eden maintaining a dominant market share despite experiencing a 44% decline in volume. 

    Network Activity Thrives

    Despite the challenges, the number of funding rounds for projects within the Solana ecosystem saw a reduction of 37% QoQ, with only 29 projects announcing funding. Yet, the total amount raised soared to $173 million, a 54% increase QoQ and the highest quarterly funding since Q2 2022.

    Solana
    Funding growth in the Solana blockchain during Q3. Source: Messari

    Network activity remained robust, as evidenced by a 109% increase in average daily fee payers, which reached 1.9 million. Additionally, the average daily new fee payers grew by 430% QoQ to 1.3 million, signaling a growing user base. 

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    The average transaction fee on Solana increased by 6% QoQ to 0.00015 SOL (approximately $0.023), while the median transaction fee dropped by 19% to 0.000008 SOL (around $0.0013). 

    As of October 15, Solana’s market capitalization also grew by 5% QoQ, reaching $71 billion and maintaining its position as the fifth-largest cryptocurrency, trailing only 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, decreased by 25% QoQ to 1.3 million SOL (approximately $196 million), with 56% of this total coming from transaction fees.

    Solana
    The daily chart shows SOL’s price retrace experienced over the past 72 hours. Source: SOLUSDT on TradingView.com

    At the time of writing, SOL was trading at $166, down 5% for the seven day period.

    Featured image from DALL-E, chart from TradingView.com 

    Ronaldo Marquez

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  • Solana Meme Coins Outperform Ethereum 800% YTD – Top Winners Revealed

    Solana Meme Coins Outperform Ethereum 800% YTD – Top Winners Revealed

    In the first quarter of the year, Solana-based meme coins have emerged as the frontrunners, surpassing Ethereum’s meme coin ecosystem and artificial intelligence (AI) tokens, according to a recent report by market data platform CoinMarketCap. 

    This shift in popularity signifies a change in dynamics within the cryptocurrency market, with meme coins gaining traction and challenging previously dominant narratives such as smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs).

    Solana Ecosystem Dominates Growth Chart

    The CoinMarketCap report highlights that the Solana ecosystem has consistently topped the growth chart for the past eight months, with over 20 new tokens introduced in Q2 alone. 

    Ethereum’s ecosystem followed closely behind with 14 new tokens, while Derivatives and Stablecoins witnessed relatively lesser growth with 5 and 4 new tokens, respectively. This surge in Solana-based token offerings indicates a growing interest in the network and its potential.

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    Solana’s meme coin ecosystem, in particular, has gained significant momentum in price performance and popularity since October 2023. Although Ethereum remains the dominant blockchain, Solana’s growing prominence suggests a noteworthy trend in the crypto space.

    Interestingly, SOL memes have significantly outperformed ETH memes, delivering an average return of 8,469% compared to 962% for Ethereum, as seen in the chart below. 

    Top Solana and Ethereum meme coins winners. Source: CoinMarketCap

    As “speculative capital” from other chains rushed into Solana, attracted by the explosive rallies of tokens like dogwifhat (WIF) and Bonk Inu (BONK), more meme coins experienced price surges, attracting additional attention and capital. 

    The top winners in the meme coin space include the cat characters MEW, POPCAT, and Book of Meme (MEME). These tokens have outperformed even the most popular ones like WIF, BONK, Ethereum’s Pepe coin (PEPE), and Shiba Inu (SHIB).

    Notably, political memes also emerged as a popular subcategory, with the leading MAGA (TRUMP) meme coin gaining over 5100% year-to-date, largely due to vocal support for crypto from former President Donald Trump and the acceptance of crypto for campaign donations.

    Ethereum Tops Fee Income Rankings

    Despite Solana’s significant gains, Ethereum continues to dominate the Layer 1 (L1) smart contracts market, representing 62.11% of the major L1s. The report notes that Ethereum’s recent milestone was propelled by the SEC’s approval of Ethereum Spot ETFs. 

    However, Binance Smart Chain (BNB) and Solana have also gained traction, adding $42 billion and $18 billion to their market share among L1 networks. Solana currently leads with over 1.6 million active daily addresses, followed by BNB with 1 million active addresses.

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    In Q2, Ethereum experienced record low gas fees, reaching levels not seen since 2020 due to the growing adoption of Layer 2 solutions and the market excitement surrounding Solana-based meme coins. 

    Despite representing 62% of the market cap among major L1s, Ethereum accounted for 70% of the daily revenue, generating approximately $2.7 million. Solana ranked second with around $900,000 in daily revenue.

    According to Lookonchain, Ethereum topped the fee income rankings in the past year with $2.728 billion, followed by Bitcoin with $1.302 billion. 

    Other notable networks include Tron ($459.39 million), Solana ($241.29 million), Binance Smart Chain ($176.56 million), Avalanche ($68.83 million), zkSync Era ($59.77 million), Optimism ($40.4 million), and Polygon ($23.91 million).

    Solana
    The 1-D chart shows SOL’s price volatility experienced in the past few days. Source: SOLUSD on TradingView.com

    Despite both platforms experiencing success in various financial metrics and growth charts, Solana’s native token, SOL, has significantly outperformed Ethereum’s ETH token. 

    As of the current trading price, SOL is valued at $143.25, showcasing a year-to-date growth of 650%. ETH has seen a more modest surge of 68% during the same time frame, currently trading at $3,310.

    Featured image from DALL-E, chart from TradingView.com 

    Ronaldo Marquez

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  • Solana Saga Orders Scrapped As $30 Million BONK Token Package Overshadows Device's Value

    Solana Saga Orders Scrapped As $30 Million BONK Token Package Overshadows Device's Value

    Solana (SOL) and its associated meme coin, Bonk (BONK), have witnessed remarkable surges in value, with SOL recording gains of over 71% and Bonk experiencing an astonishing 342% increase over the past 30 days. 

    The positive growth within the Solana ecosystem has resulted in a surge in demand for the flagship mobile device, Solana Saga. However, the Solana Mobile team recently addressed challenges in meeting the “overwhelming demand” and explained order cancellations and inventory management issues.

    Solana Mobile Faces Inventory Mishap

    Over the past month, SOL has seen a significant uptrend, inching closer to the $100 mark, a level not reached since April 2022. Additionally, Bonk has experienced an extraordinary surge reaching a trading value of $0.00001896.

    The 1-day chart shows BONK’s price correction. Source: BONKUSDT on TradingView.com

    Given these developments and the social buzz within the blockchain and its mobile device, the Solana Mobile team confirmed that their limited inventory of 20,000 devices worldwide has sold out, with both the US and EU markets experiencing high demand.

    According to a recent statement on X (formerly Twitter), in the process of fulfilling orders, the Solana Mobile team encountered an “inventory management issue” with their third-party distributor. This issue resulted in an inaccurate representation of the available inventory.

    Consequently, the team was unable to fulfill orders placed after the inventory was depleted. Additionally, orders suspected of suspicious activity, such as excessive device orders or payment risks, were flagged and subsequently canceled. 

    According to the announcement, the objective behind these measures is to ensure that as many users as possible can enjoy the Solana Saga mobile device.

    Customers affected by the order cancellations have been promptly notified, and they will receive refunds within the coming days. 

    Solana’s DEX Volume Overtakes Ethereum And Arbitrum

    The Solana ecosystem, together with its native token SOL, has recently achieved significant milestones. Notably, Solana’s 24-hour decentralized exchange (DEX) volume has exceeded that of Ethereum (ETH) and Arbitrum (ARB) combined, surpassing the $2 billion mark. 

    Additionally, Solana has emerged as the third-largest altcoin (only behind BNB) by market capitalization. These achievements reflect the growing popularity and success of Solana within the cryptocurrency market.

    According to Token Terminal data, SOL’s market cap (circulating) stands at $41.05 billion, reflecting a remarkable increase of 46.98%, flipping XRP’s market cap by over $7 billion.  

    The revenue generated has also witnessed substantial growth, with an 80.43% increase to $2.39 million. Furthermore, SOL’s fully diluted market cap has reached $54.31 billion, showcasing a significant rise of 45.60%.

    The revenue generated on the Solana platform, when annualized, amounts to an impressive $29.13 million, signifying a substantial increase of 94.75%. 

    Examining SOL’s financial ratios, the price-to-fully diluted ratio stands at 796.78x, indicating the market’s high expectations for future growth. However, this ratio has experienced a recent decrease of 19.3%. 

    Solana
    SOL’s price inching closer to the $100 mark on the daily chart. Source: SOLUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Ronaldo Marquez

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