The Solana ecosystem showed positive growth due to the adoption of fees in the local market
Developer activity continued to increase on Solana, while TVL declined

This is evident from a tweet from Messari on December 17, despite the general FUD plaguing the crypto market, Solana’s [SOL] ecosystem showed signs of growth.

Read from Solana [SOL] Price prediction 2023-24

One reason for Solana’s growing ecosystem could be the network’s adoption of the local fee market. The introduction of the local fee market allowed users to send priority fees to validators to prioritize their transactions. This resulted in a reduction in spam and nodes could make better use of Solana’s block space.

Developers remain interested in Solana

Good news: developers were interested in Solana despite the volatile market conditions. According to data from token terminal, the number of active developers on the network continued to increase despite falling prices. So there was an increase in contributions to Solana’s GitHub.

The growing number of developers and subsequent development activities could ease the transition from TIPINs (Token Incentivized Physical Infrastructure Networks) to the Solana network. TIPINs primarily use token rewards to incentivize individuals to complete real-world activities.

Thus, the emergence of TIPINs would be a key factor in Solana’s growing ecosystem. TIPINs such as the Helium network, Hivemapper, and Teleport could bring more users into the Solana ecosystem.

The NFT angle

The NFT market was one of the few industries in which Solana experienced positive and consistent growth. The increasing interest in Solana’s NFTs could greatly contribute to the future of Solana’s ecosystem.

From Solana floor‘s data, the Solana Blue Chip Index was observed to have moved in a positive direction over the past 30 days. In tandem with this, the overall minimum value for Solana’s NFTs also increased. Solana’s total bottom value had risen from $154 million to $253 million in the past month.

Source: Solana Floor

Despite the improvements in the Solana ecosystem, the TVL has been severely compromised over the past month.

Based on information from DefiLlama, Solana’s TVL fell from $1 billion on Nov. 1 to $256 million at the time of writing.

Subsequently, the fees generated by Solana also declined. According to Token Terminal, Solana’s collected revenue plummeted after Nov. 7. The revenue generated has since fallen by 50%, from $52,484 to $26,580 in 40 days.

Source: Token Terminal

It remains to be seen whether Solana’s ecosystem can overcome the current hurdles.





This post Solana: Can this statistic help SOL in its ongoing battle against market uncertainty?

was published first on https://ambcrypto.com/solana-can-this-metric-help-sol-in-its-continued-fight-against-market-uncertainty/

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