Bankless reviews Solana: Significant improvements in network downtime, protocol revenue, and TVL grow by nearly 50%

Despite facing multiple setbacks since 2022, Solana seems to show signs of recovery, even as it may face potential selling pressure from the restructuring of the FTX team in the future. Blockchain media Bankless has compiled recent positive developments in the ecosystem development of Solana.

Solana on the Frontlines of the Bear Market

Solana faced network interruptions in the first half of 2022 and later dealt with the repercussions of the FTX collapse in the second half of the year.

In the past year, Solana's market value plummeted by 93%, while TVL dropped by 96%, leading to widespread pessimism about Solana on crypto Twitter.

As we enter 2023, Solana faces potential securities charges as the SEC files lawsuits against exchanges.

Despite these challenges, Bankless believes that with improvements in addressing network interruptions and the advancement of new applications like state compression, the future of Solana remains promising.

Solana Network Stability and Nearly 50% Increase in Revenue

Aside from a brief network interruption in February due to consensus mechanism issues, Solana has been running smoothly.

The daily transaction volume continues to grow.

Bankless points out that network upgrades and prioritized fees have effectively increased the cost of spam, which has helped alleviate Solana's long-standing downtime issues.

Furthermore, prioritized fees have brought in more revenue for Solana, with protocol revenue increasing by 42% in SOL terms compared to 2022.

Solana Ecosystem Highlights

LSD Boosts TVL Increase

Solana's TVL has grown by 41% this year, with liquidity staking derivative protocols like Marinade Finance, Jito Network, and Lido achieving triple-digit growth on Solana and securing a spot in the top ten.

Solana State Compression Technology

In April of this year, Solana introduced state compression technology, a method of saving on-chain data storage costs and significantly reducing expenses.

According to official statements, the cost of minting 1 million NFTs on Solana is only $113, even lower than Polygon's costs.

Exaggerated Developer Exodus

Following the FTX incident, the crypto community had various suspicions about Solana, including rumors of developers leaving the platform.

However, Bankless points out that while there have been developer departures, data on GitHub shows that the amount of code submissions by developers has remained consistent, suggesting that the rumors of a "mass exodus of developers" have been exaggerated.

Positive Signs for Solana

Bankless concludes by highlighting recent developments for Solana, including:

• Neon EVM: Compatibility with Ethereum DApps without the need for code changes

• Solang: Developers can write code in the Solidity programming language

• Move: Introducing the Move language to attract more developers

• AI: Solana Foundation launches a $10 million development fund to promote AI integration

Solana has faced a challenging journey in the bear market, with negative news as mentioned at the beginning of this article, and the upcoming or possibly ongoing weekly liquidation plan by the FTX restructured team.

The restructured team holds a total of $3.4 billion in assets, with SOL accounting for $1.162 billion, but many analysts believe the impact will be limited.

Furthermore, Visa recently praised Solana, expressing interest in:

Visa Highly Commends Solana: Low-Cost, Scalable, and Will Pilot Stablecoin Settlements