After a tumultuous 2022 for Solana in which the crypto project lost its main backer, namely FTX, here are the first positive signs of recovery with several indicators showing growth, notably in the NFT and liquid staking sectors .
Successful implementations across the tech stack and significant new partnerships are driving the resurgence of Solana and its crypto SOL, which many are still betting on, including institutional investors.
Will the famous “Ethereum killer” blockchain network be able to return to its glory days with its decentralized ecosystem?
We see it together in this article.
Solana’s progress in recent months: excellent figures in liquid staking
Solana posted excellent figures since the start of the year after a catastrophic 2022with the NFT and liquid staking sectors that advance the crypto project.
Starting with the basics, we can see how in 2023 Solana TVL went from 25.12 million SOL to 30.95 million currently.
Even in USD, the indicator marks an increase of over 50%, giving investors hope that the worst of the bear market is now behind us.
Indeed, the emotional and image damage caused by collapse of the FTX stock market in November 2022 (main funder of technological developments) and all recent problems related to network outages appear to have been overcome.
The crypto project team continues to innovate with major improvements in the technology stack, achieving major milestones in the NFT market (which we will expand on in the next section) and reaching 100% channel availability since the beginning of the year.
This is a great achievement for Solana, given that she has been publicly attacked on several occasions, as is often the case. in the past it was necessary to perform a synchronized network reboot thanks to the coordinated intervention of the validation team.
Furthermore, the two partnerships signed with Shopify And Visa over the past two months have been well received by the community, with both companies building their services on top of decentralized infrastructure.
On the liquid staking front, we can see this over the past month all LSD protocols on Solana saw strong growth with TVL increasing in double-digit percentages.
Jito for example, the value locked in the app has increased by 62.33% over the last 30 days, while the high-end protocol Marinade Finance has increased by 20.65%.
Over the year, more than 2.4 million SOLs were added to Jito, skyrocketing metrics on this platform.
Investors are seizing profit opportunities in a niche sector such as liquid staking on Solana, where only 3 to 4% of SOLs are actually staked while Ethereum we can observe a percentage around 40% for the same context.
The yield offered by these cryptographic platforms is twice as high as those offered by Lido, RocketPool and Stakewise on Ethereum, where you can however count on a higher level of security.
Currently, the LSD market on Solana is worth approximately $258 million.and forecasts point to a further increase on the horizon.
Crypto: Solana improves some expectations in its tech stack and reduces the costs of minting NFTs by 2,000 times
As mentioned earlier, Solana developers have decided over the past year to introduce key upgrades by improving their technology stack.
The positive effects have been seen both in terms of the development of the crypto ecosystem as a whole and NFT Marketplace especially.
One of the most interesting updates to mention in this regard is Firedancer, which by promoting significant optimizations should make Solana validate customer much more efficient than the foundation’s current client.
As of today, only 3% of the crypto market is on the Solana Virtual Machine (SVM), while the remaining 97% primarily runs on the Ethereum Virtual Machine (EVM).
For each Firedancer, improvements on the hardware/bandwidth side could help drive SVM adoption.
Regarding the NFT topic, it is worth noting the innovation introduced in April this year with the “State Compression» solution that significantly reduced storage costs by keeping data off the original chain.
By leaving only the essential data on the Solana chain and using the Merkle Trees structure, the developers arrived at a compressed format. version of non-fungible tokens, namely cNFTs, highly optimized on the data storage side.
In June 2023, Tensor launched its compressed NFT marketplace taking advantage of this technology implementation and capturing most of the market share of the collectible crypto asset market on Solana.
The main advantage of “state compression” essentially lies in reduce the cost of mining by c-NFT by being the storage itself (performed off-chain) more stimulating.
Consider that without compression technology, the minting cost for 1 million NFTs would have been $253,000 while it now only requires $113.
This is a reduction of more than 2,000 times the cost of minting, which is a key competitive advantage within the industry. blockchain landscape.
Solana, in doing so, also became cheaper than Polygon On this front, to create 1 million NFTs, Sandeep Nailwal’s network requires payment of $32.8 thousand in gas fees.
In comparison, Ethereum still remains the most expensive network with the highest fees on the market, but also with the most prosperous ecosystem and on which the most volumes run.
Solana is still far from achieving the same goals as the second largest decentralized network in the world after Bitcoin, but with this new update the distances have been significantly reduced and the growth prospects for the coming years have been improved.