The Solana blockchain network has made enormous progress and is on track to catch up with ethereum. Based on a hedge fund Syncracy Capital's Recent FindingsSolana's market share and valuation have increased in a short period, reaching estimates that the network represents 33% of ethereum's value.
This progress highlights the extent to which solarium has come since being considered an undervalued player in 2023, thanks to a more coherent architecture, higher transactions per second, and development simplicity. Solana has seen, and continues to see, an increasing volume of on-chain activity and growth in users and builders, after overcoming the difficulties caused by the FTX collapse.
App earnings preview and other metrics
Without a doubt, the most notable change this month is that Solana set a new record, surpassing <a target="_blank" href="https://www.coingecko.com/en/coins/ethereum” target=”_blank”>ethereum in terms of monthly app revenue. This is not surprising, given the rise of finance and commerce-oriented applications.
Retailers have found Solana very attractive because it is easy to use on mobile devices and has low transaction costs. Pumpdotfun and other similar applications also show the full potential of the Solana network. These applications currently generate more than $348 million a year.
With around 42 million SOL locked as of October 26, Solana's TVL has reached a two-year high. In contrast, ethereum's TVL has remained somewhat unchanged, particularly in decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN), which are seeing a surge in usage on the platform. This increase in TVL reflects the growing confidence in the Solana ecosystem.
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The future of Solana and the expanding ecosystem
The appeal of the Solana ecosystem is constantly increasing, and it even competes with ethereum in the few niches that remain unchallenged. The network is not only focused on retail merchants but is also on the rise with several innovative solutions. DePIN protocols that aim to incentivize users to maintain real-world infrastructure.
Solana's upcoming Firedancer update is expected to further improve network scalability. Syncracy Capital said this will keep Solana's valuation disparity with ethereum at a low level, thus establishing it as a formidable competitor.
SOL Price Forecast
Is <a target="_blank" href="https://coincodex.com/crypto/solana/price-prediction/” target=”_blank”>projected that by December 14, 2024, the price of Solana will have appreciated by 12%, reaching $242, data from <a target="_blank" href="https://coincodex.com/crypto/solana/price-prediction/” target=”_blank”>CoinCodex sample. Considering the Fear & Greed Index is within its “Extreme Greed” limits and consumer behavior remains positive, it would make more sense to buy Solana at this time. What's more, there is a possibility that the price of Solana will also rise considering the efficiency of the network and the monthly growth of 30%.
Featured image of DALL-E, TradingView chart
