In the ashes of November 2022, following the collapse of traders like FTX, the Solana blockchain has risen like a Phoenix, not just regaining but also escalating its gains, attracting investors once again into its ecosystem. Subsequently, developers well-versed in the intricates of Ethereum have been observed migrating towards Solana, and the drive doesn’t seem to be slowing down anytime soon.
Unveiling his discerning analysis on the matter, Jack Inabinet, a Senior Analyst with Bankless, revealed how Solana has carved out a place for itself in the highest echelons of the blockchain world. Carrying a staggering year-to-date increase of 770% in its SOL’s value, Solana’s stability and growth are unparalleled. The flourishment can be attributed to the cohesive efforts of native teams within the Solana network, crafting resilience within its infrastructure. Nevertheless, Solana’s feat has drawn attention further afield, alluring non-native protocols towards capitalizing on Solana’s success.
Amidst the bull cycle, Solana’s strategic comeback is truly astonishing. From a low point of an $8 value in December 2022, Solana soared to an annual high of $210 within the initial phase of March, rendering it one of the most significant uptrends. But Solana’s growth does not stop there. Overstepping the boundary of native token holders, the ecosystem’s strides have resonated beyond its familial networks.
Performing beyond expectations, developers have navigated Solana’s challenging forefront with finesse, initiating developments that have ridden the wave of hype instead of being washed under. Core to this impetus was PYTH airdrop, the Pyth network’s native token, providing a fascinating incentive for users from diverse ecosystems to engage with SOL by rewarding tokens to those addresses in play across multiple networks with Pyth oracles.
Furthermore, Solana’s liquid staking protocol Jito Labs pioneering their airdrop set the wheels in motion, propelling the concept of “mass adoption” via their point-based incentive systems.
The wave of interest has also been visible in Ethereum developers moving their bases to Solana. Solana’s popularity owed to its on-chain activity, with projects keen to harness this growing phenomenon.
A noteworthy example includes the movement of the decentralized compute-sharing network, Render, which migrated its token to the Solana Program Library (SPL) standard, while MetaMask started supporting Solana by introducing “Snaps”.
Ethereum’s lending pioneer, Aave, too, gave its nod to the deployment of a bare-bones version of its V3 isolated money market, built atop Solana’s Neon Ethereum Virtual Machine (EVM), demonstrating a compatible Ethereum environment.
Inabinet, however, pointed out that Ethereum and Solana have different scaling approaches, with Ethereum fragmenting networks and Solana consolidating its state into a unified entity. Solana’s alternative vision for blockchain has piqued developers’ interest, offering scalability and a unified point of contact.
However, Inabinet points out the need for adopting a diversified approach to maximize success in maintaining market shares among developers and cautions against rutted loyalty to chains as a hindrance to broad-scale adoption and the inflow of traditional assets into the on-chain ecosystem. His concluding remarks emphasized the banking industry’s necessity to clear a towering chasm of uncertainty to enable the crypto industry to mature from infancy into full-blown adoption and subsequently draw innumerable traditional assets on-chain.
As of the current moment, SOL reflects a promising 5% surge over the last 24 hours, bringing its market valuation to a commendable $171, with its sight set firmly at breaking through the $176 price hurdle in the near future. Solana’s financial trajectory is suggestive of a hint of optimism amidst an ever-volatile market, recapturing what was once lost and continuing to sustain a progressive path to market resurgence.
