Solana, a Blockchain network known as the “Ethereum killer,” is showing signs of recovery after a challenging year. The crypto project has experienced growth in the NFT and liquid staking sectors, leading to optimism among investors, including institutional investors. This article explores Solana’s progress and the factors contributing to its resurgence.
Progress in Liquid Staking
Solana has been performing well in recent months, with the NFT and liquid staking sectors driving its progress. The Total Value Locked (TVL) in Solana has increased from 25.12 million SOL to 30.95 million SOL since the beginning of the year, representing a growth of over 50% in USD. This increase in TVL is an encouraging sign that the worst of the bear market may be behind Solana.
Despite facing challenges such as the collapse of its main backer, FTX, and network outages, Solana’s Development team has continued to innovate and achieve key milestones. The technology stack improvements have contributed to the success in the NFT market. Additionally, partnerships with companies like Shopify and Visa have been well-received by the community, indicating confidence in Solana’s decentralized infrastructure.
The liquid staking sector on Solana is experiencing strong growth, with various LSD protocols seeing double-digit percentage increases in TVL. For example, Jito has seen a 62.33% increase in locked value within the application in the past month, and Marinade Finance has grown by 20.65%. The significant growth in metrics on these platforms suggests that investors are capitalizing on profit opportunities in this niche sector. Compared to Ethereum, where around 40% of SOLs are staked, only 3-4% of SOLs are staked on Solana, indicating further growth potential in the liquid staking sector.
Improvements in Technology Stack and NFT Market
Solana’s developers have been introducing upgrades to improve the technology stack and enhance the crypto ecosystem. These improvements have had a positive impact on the NFT market in particular. One notable update is Firedancer, which optimizes Solana’s validation client, making it more effective than the foundation’s current client. This improvement aims to increase the adoption of Solana Virtual Machine (SVM), which currently only accounts for 3% of the crypto market, compared to Ethereum Virtual Machine (EVM) at 97%.
Solana has also introduced an innovative solution called “State Compression” in the NFT market. This solution reduces storage costs by keeping non-essential data off the original chain, resulting in compressed non-fungible Tokens (cNFTs) that are highly optimized in terms of data storage. Tensor launched its compressed NFT market using this technology implementation and has captured a significant market share of the collectible cryptographic asset market on Solana.
The main advantage of “State Compression” is the significant reduction in minting costs for cNFTs. Without compression, minting 1 million NFTs would cost $253,000, but with the compression technology, it now requires only $113, a reduction of over 2,000 times. This cost reduction gives Solana a competitive edge compared to other blockchain networks. It is now cheaper than Polygon, which requires payment of $32.8 thousand in gas fees to create 1 million NFTs. Although Ethereum remains the most expensive network, Solana’s improved growth prospects have narrowed the gap between the two networks.
Conclusion
Despite a challenging year, Solana is showing signs of recovery and growth, particularly in the NFT and liquid staking sectors. The crypto project’s progress is driven by successful implementations in the technology stack and important partnerships. The introduction of Firedancer and “State Compression” has significantly improved Solana’s technology and reduced minting costs for NFTs. While Solana has yet to reach the same level as Ethereum, these developments have improved its growth prospects for the future. As Solana continues to innovate and attract more investors, the “Ethereum killer” blockchain network may be able to return to its heyday with its decentralized ecosystem..
#growth #NFT #crypto #liquid #staking #sectors
Progress in Liquid Staking
Solana has been performing well in recent months, with the NFT and liquid staking sectors driving its progress. The Total Value Locked (TVL) in Solana has increased from 25.12 million SOL to 30.95 million SOL since the beginning of the year, representing a growth of over 50% in USD. This increase in TVL is an encouraging sign that the worst of the bear market may be behind Solana.
Despite facing challenges such as the collapse of its main backer, FTX, and network outages, Solana’s Development team has continued to innovate and achieve key milestones. The technology stack improvements have contributed to the success in the NFT market. Additionally, partnerships with companies like Shopify and Visa have been well-received by the community, indicating confidence in Solana’s decentralized infrastructure.
The liquid staking sector on Solana is experiencing strong growth, with various LSD protocols seeing double-digit percentage increases in TVL. For example, Jito has seen a 62.33% increase in locked value within the application in the past month, and Marinade Finance has grown by 20.65%. The significant growth in metrics on these platforms suggests that investors are capitalizing on profit opportunities in this niche sector. Compared to Ethereum, where around 40% of SOLs are staked, only 3-4% of SOLs are staked on Solana, indicating further growth potential in the liquid staking sector.
Improvements in Technology Stack and NFT Market
Solana’s developers have been introducing upgrades to improve the technology stack and enhance the crypto ecosystem. These improvements have had a positive impact on the NFT market in particular. One notable update is Firedancer, which optimizes Solana’s validation client, making it more effective than the foundation’s current client. This improvement aims to increase the adoption of Solana Virtual Machine (SVM), which currently only accounts for 3% of the crypto market, compared to Ethereum Virtual Machine (EVM) at 97%.
Solana has also introduced an innovative solution called “State Compression” in the NFT market. This solution reduces storage costs by keeping non-essential data off the original chain, resulting in compressed non-fungible Tokens (cNFTs) that are highly optimized in terms of data storage. Tensor launched its compressed NFT market using this technology implementation and has captured a significant market share of the collectible cryptographic asset market on Solana.
The main advantage of “State Compression” is the significant reduction in minting costs for cNFTs. Without compression, minting 1 million NFTs would cost $253,000, but with the compression technology, it now requires only $113, a reduction of over 2,000 times. This cost reduction gives Solana a competitive edge compared to other blockchain networks. It is now cheaper than Polygon, which requires payment of $32.8 thousand in gas fees to create 1 million NFTs. Although Ethereum remains the most expensive network, Solana’s improved growth prospects have narrowed the gap between the two networks.
Conclusion
Despite a challenging year, Solana is showing signs of recovery and growth, particularly in the NFT and liquid staking sectors. The crypto project’s progress is driven by successful implementations in the technology stack and important partnerships. The introduction of Firedancer and “State Compression” has significantly improved Solana’s technology and reduced minting costs for NFTs. While Solana has yet to reach the same level as Ethereum, these developments have improved its growth prospects for the future. As Solana continues to innovate and attract more investors, the “Ethereum killer” blockchain network may be able to return to its heyday with its decentralized ecosystem..
#growth #NFT #crypto #liquid #staking #sectors
