Solana sees significant growth in Defi, NFTS: Messari

Solana sees significant growth in Defi, NFTS: Messari

After a turbulent year 2022 due to macroeconomic head wind, the performance of Solana improved significantly in the first quarter of the year. The data indicates that market capitalization, together with the broader market, has increased by more than 118 % compared to the previous quarter.

In addition, numerous ecosystem developments have fueled the fee and transaction activities in the first quarter.

Solana's performance in the first quarter

Solana's network failures had previously triggered discussions about a possible bankruptcy. But his performance stabilized after upgrades such as quic, priority fees (local fee markets) and Stake-Weighted Quality of Service (QOS). In the first quarter, the Layer 1 Blockchain network recorded significant growth in the Defi, NFTS and Gamefi.

According to the latest Messari report, the total value in Solana, denominated in USD, rose by 23.5 % compared to the previous quarter. However, the TVL, which was denominated in Sol, decreased by 40.7 % in the same period, which indicates that "the asset increases in USD have powered the TVL compared to the new capital".

Liquid Staking derivatives (LSDS) continued to support the Solana ecosystem, with Marinade Finance, Lido, Jito and JPool increasing their TVL by 100 % or more in the course of the quarter. These four LSDs also made it into the top 20 of tvl.

Other protocols such as Orca, Raydium and Solend increased their TVL massive parallel to the general market recovery.

A similar trend was also observed in the entire Solana NFT ecosystem. Messari's data showed that the total number of new NFTs daily has increased from 2.6 million to 2.9 million QOQ, which corresponds to an increase of almost 12 %. The NFT sales volume on the secondary market rose by almost 36 %.

This is in contrast to Defi, since the sales in Sol rose 20 % before they shot up, which essentially indicates that "sales activities were not only caused by financial increases in USD".

after-effects of the FTX implosion

Solana's strong connections to the crypto empire of Sam Bankman-Fried-which invested in nine of its projects from December 2020 to March 2022-proved to be a disaster for the network. This triggered rumors about a developer exodus.

But with the introduction of more and more applications this year, their user base also increased. This trend helped to increase and stabilize active programs in the Solana ecosystem. In the first quarter of 2022 there were 58,000 unique active programs that rose to 96,000 in the first quarter of 2023.

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