Solana's Meteoric Rise in Q1 2024: What's Behind the Hype?

Solana’s Meteoric Rise in Q1 2024: What’s Behind the Hype?

Solana was under speculation in 2022 following the FTX collapse and SBF BFF drama, dropping in value from November 2021. Fast forward to 2024, and Solana’s ecosystem is bursting out of its old boundaries again as the overall crypto bull run picks up momentum before the Bitcoin halving event 2024! 

So, what is Solana? Solana is a high-speed blockchain that encourages smart contracts, DApps and NFTs. Solana’s transactions on the network are very fast and low cost compared to networks like Ethereum. The native token of the Solana blockchain is SOL. Almost 192 million NFTs have been minted on Solana, making it a top NFT blockchain in 2024.

The Proof of history consensus mechanism created by founder Anatoly Yakovenko has allowed the Solana blockchain to reach a TPS of up to 65,000 transactions per second, at a cost of a fraction of a cent.

Comparative Analysis

  • Solana network has the second largest number of active developers in 2023 after Ethereum
  • Ethereum ecosystem has captured 12.7% of the investor interest, thus ranking as the second most popular blockchain space in 2024
  • All of the ethereum layer 2s account for 11.9% of the investor interest in blockchain ecosystems.
  • Arbitrum ecosystem and Base ecosystem have come up as the most popular among Ethereum layer 2, holding 3.3% and 3.2% of investor interest in chain-focussed narratives.

Solana Overview 

Solana’s architecture is made for speed and efficiency, utilizing a unique consensus mechanism known as Proof of History with Proof of Stake to achieve an overall high throughput. The Solana network supports a wide range of applications, from DeFi to NFTs. It has become a popular choice for developers looking for scalability and users wanting cheap and steady transactions.

Let us have the state of the Solana ecosystem and its explosive growth in Q1 2024. 

  • Solana experienced a major surge on March 18 2024, crossing the $200 mark for the first time in two years and reaching its highest price since 2021. 
  • A notable increase in network trading volume fueled the surge. 
  • In last 12 months, SOL’s price has grown by 700%
  • The layer 1 blockchain captures 49.3% of the global crypto investor interest in chain-specific spaces. 
  • On March 15 2024, Solana (SOL) achieved a major turn as it surged by 11%, pushing its market capitalization to a new all-time high of $82.5 billion. This surge occurred despite the broader market downturn, which witnessed a 4% contraction.
  • A decent part of Solana’s recent activity has occurred on decentralized exchanges (DEXs) such as Jupiter and Raydium. Traders have been actively accumulating memecoins like Bonk and Slerf within these platforms. Also, Solana-based DEXs have been steadily gaining market share from Ethereum DEXs like Uniswap for nearly four months.
  • Over the last one week, there has been a remarkable surge in Solana’s on-chain volumes, accompanied by a notable increase in network fees collected, reaching ATH levels.
  • Recent data from DefiLlama reveals a consistent uptrend in daily transaction fees on Solana since the start of March 2024. 
  • On March 18 2024, the total transaction fees paid on Solana reached a ground-breaking record of $5.08 million.
        Current price $189.49 
      Market capitalization $84.19 billion USD
        Percent staked 65.37%
Est reward rate APY on staking 5.01%

Solana-based tokens

The Solana ecosystem is thriving each day with new developments. Here is a list of top Solana blockchain coins by market cap:

Name Price Market Cap
Tether $1 $778.66 million
USDC $1 $2.033 billion
UXD $0.99 $7.46 million
Dai $1 $6,62,012
Parrot USD $1.01 $5.23 million

Solana based meme coins have performed exceptionally well in Q1 2024. They are like chips in the grand casino of Solana’s ecosystem, where traders and investors play the market while expecting the next viral wave.

Name Price Market Cap
Dogwifhat $2.94 $3.09 Bn
Bonk $0.0000257 $1.5 bn
Book of meme $0.01232 $708.37 Mn
Slerf $0.69 $379,915,136
Popcat $0.23 $296,767,516

In the NFT world, Solana is gaining ground over Ethereum, owing to the platforms like Solanart and Magic Eden, which offer low fees and fast processing times.

Here is a list of top Solana based NFT collections in 2024 Q1:

Name Floor price Collection value
Famous Fox Federation 6.28 SOL $9.13mn
Okay Bears 5.25 SOL $9.82mn
SMB Gen2 39.50 SOL $36.93 mn
Nyan Heroes 2.39 SOL $4.96 mn
GGSG 15.99 SOL $29.9 mn

Also Read : Top 10 RWA Altcoins for 10x Profit In 2024

Solana Ecosystem

In the last 10 months, Solana has emerged as a commendable performer with its price having a 10x surge. Its resilience and survival in a bleak crypto winter is attributed to factors like a vibrant developer community, a burgeoning Defi landscape, and a thriving NFT sector. 

  • In March 2024, Solana exhibited exceptional resilience and efficiency, handling a surge in network activity of the Jupiter airdrop with remarkable composure . 
  • Despite some users experiencing delays in transactions, notably with selling airdrops, the network’s overall performance was amazing.
  • Solana processed 1 billion in DeFi trading volume within just three hours and managed 2.5 million non-vote transactions over 2.5 hours. Although the transactions per second (TPS) momentarily dipped from 2,100 to 568, the network swiftly regained its footing, ensuring no validators failed and no transactions were lost. 
  • This kind of a show, in the face of what some might consider a stress test, highlights Solana’s immovable architecture. 
  • The network not only sustained operation under heavy load without halting but also showcased its potential to revolutionize the blockchain space. 
  • The unmatchable  1 billion DeFi trading volume achieved in such a short time is a testament to Solana’s scalability and its active role in bridging the gap to traditional finance (TradFi). 
  • This event marks a significant milestone, highlighting the steady pace at which the crypto industry, with Solana at the forefront, is evolving in 2024 Q1.

Also Check Out The: Bitcoin ETFs: Discover the Top Performers in Futures and Spot Markets

Related posts

BREAKING: South Korean Authorities Indict Terra Co-Founder Daniel Shin

EdaFace Admin

EdaFace Price Live Today: Why BTC Price is Going Up?

EdaFace Admin

Analysts Optimistic That Sparklo (SPRK) Will Outperform Chainlink (LINK) And Polygon (MATIC)

EdaFace Admin

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More