The Solana ecosystem has reached a significant milestone by becoming the most popular blockchain ecosystem of the year. This is due to its ability to capture almost half of the interest of the world’s crypto investors in the chain-specific theater.
Coupled with the excellent performance of native meme coins like dogwifhat and important tokens from ecosystem projects like Pyth, Solana’s return to 2021 highs shows renewed faith in the network.
Solana Dominance: Insights from the Coingecko Study
According to a study by Coingecko, as a result of Solana’s nearly 50% stake in the global chain’s specific interest, and the growing popularity and performance of its affiliated projects, the ecosystem has a significant stake that reinforces its leadership in the cryptocurrency market.
Currently priced at $191, Solana (SOL) has increased in value by 13% in the last 24 hours. The fifth-ranked cryptocurrency has a market capitalization of nearly $85 billion and its 24-hour trading volume was $9 billion.
Bitcoin price action. Chart: TradingView
The popularity of Solana’s meme coins and ecosystem initiatives manage to draw attention to the network’s living and dynamic ecosystem. As long as Solana is attracting attention and capital, its ecosystem will continue to dominate the cryptocurrency investor landscape, paving the way for network expansion and innovation.
Ethereum, on the other hand, it is the second most popular blockchain ecosystem this year, having attracted almost 13% of investor interest. Ethereum is probably no longer a hot new crypto narrative as its ecosystem and investors are already familiar with it. The Ethereum ecosystem is also seeing its focus spread across layer 2 ecosystems that are building on top of it.
SOL seven-day price ascent. Source: Coingecko
Factors Driving Solana’s TVL Increase
Meanwhile, according to DefiLlama data, the Solana blockchain has demonstrated remarkable performance, with its decentralized finance (DeFi) total value locked (TVL) increasing almost 80% only in the previous month.
Related Reading: DeFi Turmoil: Over $5 Million Wiped Out in Liquidations Amid Ethereum Price Drop
This incredible rise represented a significant turning point for the network, with Solana TVL reaching its highest point in the previous two years. According to the latest report, Solana is in the top five with the fastest growing TVL in DeFi at almost $4 billion.
Source: Defillama
Much of Solana’s TVL is based on increased trade volume, which is tracked by Defi protocols and operates on its Layer 1 (L1) network.
Last month alone, there was a 125% increase in the daily trading volume of these protocols; the trading level peaked at almost $3.7 billion.
Additionally, the network achieved an all-time high of $1.6 million in total daily fees, with fee revenues of $3.61 million.
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