Since trading companies like FTX collapsed in November 2022, the Solana blockchain has seen significant gains and regained investor confidence, with ethereum developers increasingly migrating to it.
According to recent analysis by Bankless Senior Analyst Jack Inabinet, with significant growth across key metrics and SOL up 770% year-to-date, Solana has solidified its position as a top-tier blockchain. northNative teams within the Solana ecosystem played a key role in its resurgence, but now non-native protocols are also taking advantage of the opportunity.
Developers meet expectations
Solana's comeback from a low of $8 in December 2022 to a yearly high of $210 in March is one of the most notable uptrends of this bull cycle. However, the growth of the ecosystem extends beyond its native token holders.
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x.com/BanklessHQ/status/1794827286958469616″ target=”_blank” rel=”nofollow”>According According to Inabinet, the developers have lived up to expectations, starting with the airdrop of PYTH, the native token of the Pyth network. This incentivized users from different ecosystems to explore SOL by assigning tokens to addresses that interact with Pyth oracles on multiple networks.
Also, native of Solana liquid betting protocol Jito Labs conducted its airdrop, catalyzing “mass adoption” through points-based incentive systems.
While Solana's native protocols laid the foundation for widespread adoption of the platform, ethereum developers are increasingly migrating to SOL. Inabinet highlights that, recognizing the important chain activity within Solana, projects are eager to take advantage of the opportunity.
ethereum Developers Flock to Solana
For example, decentralized compute exchange network Render migrated its token to the Solana Program Library (SPL) standard and MetaMask introduced Solana support by introducing “Snaps.”
Additionally, according to Inabinet, Aave, the first ethereum lending destination, has approved the deployment of a minimally viable version of its V3 isolated money market via Neon. ethereum virtual machine (EVM), an ethereum-compatible development environment built on Solana.
Proposals for standalone implementations, such as the EVM-based GMX perpetual trading platform, further demonstrate the growing interest in SOL.
However, the analyst noted that ethereum and Solana have different scaling approaches, with ethereum opting for network sharding and Solana favoring a unified state.
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Taking these approaches into account, Inabinet suggests that Solana's alternative vision of blockchain offers attractive features, attracting developers looking scalability and concentration of use.
However, the analyst warns that developers must take a diversified approach to maximize success and secure market share. Inabinet concluded:
The cryptocurrency industry must overcome a huge chasm of uncertainty to move from infancy to an end state where true adoption is achieved and trillions upon trillions of dollars of traditional assets hit the chain. Until then, app developers who succumb to blind on-chain loyalty are leaving money and market share on the table.
At the close of this edition, SUN has seen a 5% increase in the last 24 hours, resulting in a current trading price of $171, with the next limit price of $176.
Featured image from Shutterstock, chart from TradingView.com
