As a seasoned researcher with a keen interest in blockchain technology and its applications, I find the recent surge of institutional investments in Solana-native DApps quite intriguing. Having closely followed the crypto landscape since 2017, I’ve seen my fair share of bull and bear markets, and this resurgence in Q3 2024 is a testament to the maturing ecosystem.
In Q3 of 2024, there’s been a revival in institutional investment towards applications built on the native blockchain of Solana.
In the third quarter, a total of $173 million was collectively gathered by 29 applications built on Solana that operate without central control – an increase of over 54% compared to the amount raised during the preceding quarter.
The level of investment in Solana reached its peak since Q2 2022 in terms of funding, as indicated by a Messari report recently shared with CryptoMoon, even though the number of funding rounds dropped by 37% compared to earlier periods.
On October 28th, the report highlights that Solana outpaced Ethereum in daily transaction fees, earning a total of approximately $2.54 million, while Ethereum garnered around $2.07 million according to CryptoMoon’s report.
Solana ranks high among the primary blockchain platforms, frequently referred to as a potential rival to Ethereum due to its massive scaling strategy. This strategy is designed to boost transaction speed and lower costs, all without needing secondary blockchain layers such as layer-2.
Solana’s fee-generating users increase to 1.9 million
During the third quarter, there was a substantial rise in the transaction fees generated by the Solana network, boosting its overall earnings.
In the third quarter, the number of daily fee payers on average surged to 1.9 million, marking a significant jump of more than 109% compared to the previous quarter. Meanwhile, the number of new fee payers grew dramatically by 430%, reaching 1.3 million.
However, the average daily non-voting-related transactions decreased by 12% to 62 million.
On Solana, the typical transaction fee rose approximately 6%, reaching 0.00015 SOL tokens ($0.023), but the media transaction fee experienced a drop of more than 19%.
Institutions are driving tokenization growth on Solana
At the close of the third quarter, Solana had become the third-biggest blockchain, with a substantial number of tokenized treasuries, due to ongoing expansion in institutional investments.
123 million dollars’ worth of treasuries have been converted into digital form (tokenized) using the Solana platform, while Stellar and Ethereum have tokenized $422 million and $1.6 billion respectively.
The growth of tokenized treasuries built on the Solana blockchain is expected to persist, given that the financial heavyweight Franklin Templeton intends to debut a money market fund on this platform.
How Solana could reach 1 billion users in the next five years | Interview with Solana Labs CEO
According to the report, global financial giant Societe Generale is also expected to play a role in the advancement of blockchain technology.
Societe Generale is introducing a euro-based stablecoin, in anticipation of the complete enactment of the Markets in Crypto-Assets (MiCA) legislation. The new stablecoin has already amassed over $37 million on the Ethereum network, and Societe Generale’s cryptocurrency division is looking to expand its support to include Solana as well.
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2024-11-01 16:13