Solana Sees Strong Growth in DeFi, NFTs: Messari

Von | 30. April 2023

• Solana’s market cap increased by 118% in Q1 of 2021, driven by the growth in DeFi, NFTs and GameFi verticals.
• Total Value Locked (TVL) denominated in USD increased by 23.5%, however TVL denominated in SOL decreased by 40.7%.
• Protocols such as Marinade Finance, Lido, Jito and JPool managed to make it into the top 20 by TVL with 100% or more growth in userbase.

Solana Sees Significant Growth Across DeFi, NFTs

Despite challenges related to network performance degradation, Solana’s fundamentals improved significantly in the first quarter of 2021. The layer one blockchain network witnessed significant growth across DeFi, NFTs and GameFi verticals as its market cap increased by more than 118% compared to the last quarter. Furthermore, numerous ecosystem developments fueled fee payer and transaction activity during Q1 which led to an increase of 23.5% Total Value Locked (TVL) denominated in USD.

Stabilization Of Performance

Solana’s performance stabilized after upgrades such as QUIC, priority fees (local fee markets), and Stake-Weighted Quality of Service (QOS). Liquid staking derivatives (LSDs) continued supporting the Solana ecosystem, with Marinade Finance, Lido, Jito and JPool growing their TVL by 100% or more during this period. These four LSDs were able to make it into the top 20 protocols based on TVL size while other protocols such as Orca, Raydium and Solend also saw massive growth across their userbase for the same period.

Turbulent 2022 & Challenges Ahead

After a turbulent 2022 owing to macroeconomic headwinds, Solana’s efforts towards improvement are finally paying off. While there has been an overall increase in interest towards decentralized finance projects over recent months due to surging asset prices driving new capital inflow – implementing new features will be crucial for Solana if they wish to remain competitive within the blockchain space going forward.

Network Outages & Insolvency Fears

During Q4 of 2020 when networks outages sparked conversations around potential insolvency – it was clear that further upgrades would be necessary for preserving investor confidence within the project.. To this end – prioritizing network stability will remain key for ensuring long-term success for both users and investors alike moving forward into 2021-2022..

Conclusion

Ultimately – Solana’s impressive performance over recent months is reflective of their commitment towards development amidst uncertain times.. With further improvements planned – it will be interesting to see how well these upgrades help aid their efforts within a rapidly changing industry going forward into 2022-2023..