Since the collapse of trading companies like FTX in November 2021, the Solana blockchain has made significant gains and regained investor confidence, with Ethereum developers increasingly flocking to it.
According to a recent analysis from Jack Inabinet, senior analyst at Bankless, with significant growth in key metrics and SOL’s 770% year-to-date increase, Solana has solidified its position as a top-tier blockchain. NActive teams within the Solana ecosystem have played a key role in its resurgence, but now non-native protocols are seizing the opportunity as well.
Developers deliver on the hype
Solana’s return from a low of $8 in December 2022 to an annual high of $210 in March is one of the most notable bullish trends of this bull cycle. However, the growth of the ecosystem goes beyond native token holders.
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According to For Inabinet, the developers delivered on the hype, starting with the airdrop of PYTH, the native token of the Pyth network. This encouraged users from different ecosystems to explore SOL by assigning tokens to addresses that interact with Pyth oracles across multiple networks.
Additionally, Solana native liquid staking protocol Jito Labs led its airdrop, catalyzing “mass adoption” through points-based incentive systems.
While Solana’s native protocols have laid the groundwork for the platform’s mainstream adoption, Ethereum developers are increasingly moving to SOL. Inabinet highlights that, recognizing the significant on-chain activity within Solana, projects are eager to capitalize on the opportunity.
Ethereum Developers Flock to Solana
For example, decentralized computing sharing network Render migrated its token to the Solana Program Library (SPL) standard, and MetaMask introduced Solana compatibility by introducing “Snaps”.
Additionally, according to Inabinet, Aave, Ethereum’s first lending destination, has approved the deployment of a minimally viable version of its isolated money market V3 through Neon. Ethereum Virtual Machine (EVM), an Ethereum compatible development environment built on Solana.
Proposals for standalone deployments, such as the EVM-based perpetual trading platform GMX, further demonstrate the growing interest in SOL.
However, the analyst noted that Ethereum and Solana have different approaches to scaling, with Ethereum opting for network fragmentation and Solana favoring a unified state.
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Given these approaches, Inabinet suggests that Solana’s alternative blockchain vision offers compelling features, attracting developers seeking scalability and concentration of use.
However, the analyst warns that developers must adopt a diversified approach to maximize success and secure market share. Inabinet concluded:
The crypto industry must overcome a huge chasm of uncertainty to progress from infancy to an end state where true adoption is achieved, and trillions upon trillions of dollars in traditional assets enter the chain. Until then, app developers who succumb to blind on-chain loyalty are leaving money and market share on the table.
At the time of this publication, SUN has seen a 5% increase in the last 24 hours, resulting in a current trading price of $171, with the next price barrier at $176.
Featured image from Shutterstock, chart from TradingView.com