Solana breaks into the TOP 5 by capitalization

While Ethereum is postponing the transition to a more nimble protocol, other first-level blockchains are expanding their presence and taking away its share in the smart contract market. So, in terms of the volume of blocked funds in DeFi at the beginning of the year, Ethereum was an absolute with a market share of 97%, and now it has decreased to 63%.

Of the total pie of the market, DeFi Solana “bit off” 5%, taking fifth place

But in the NFT market, the Solana-based platform reached the second position in daily turnover with an indicator of $ 7.5 million. During October and November, Magic Eden overtook OpenSea in the number of transactions, despite a significant lag in the total number of users and turnover. Such heights were achieved in just four months after the debut of non-interchangeable tokens on Solana.

High transaction processing speed (2887 TPS at the moment), low fees ($0.00025) and a good level of decentralization (1325 nodes) attract a large number of investors. So, in the summer, Solana Labs attracted $314 million in venture capital investments at a closed token sale, and CEO Anatoly Yakovenko identified the connection of 1 billion users as a key goal. The high interest of institutional investors is also confirmed by the third largest open interest in SOL futures with a volume of $860 million.

Investors’ interest in the project led Solana to the fifth place by capitalization with $55 billion. But, if only independent blockchains with smart contract support are left in the rating, Solana will follow Ethereum immediately.

At the end of November, SOL turned out to be one of the few coins that showed growth; and over the past seven days, it is the only one showing positive dynamics out of the TOP 5, excluding stablecoins. Blockchain periodically experiences problems due to the frequent cases of ddos attacks, which leads to transaction delays and price corrections. However, the project is young, and it needs time to solve children’s sores.