Solana, with its significant impact on the maturity of the crypto market in Africa, represents a turning point in the technological landscape of the continent.
According to an executive of an exchange, the adoption of any technology is closely tied to the strength of its community. Solana has brilliantly demonstrated this dynamic through its growing base of supporters in Africa.
Let’s see all the details below.
Africa: exploring the impact of Solana in the crypto market
As anticipated, Oladotun Wilfred Akangbe, marketing director of Flincap, a platform for crypto OTC in Africa, highlighted the incredible growth and maturity of the cryptocurrency sector on the continent.
He particularly emphasized the resilience of Solana and the efforts of its community in Africa.
Akangbe shared that the cryptocurrency industry is steadily maturing, demonstrating its ability to face and overcome challenges that once would have caused a market downturn.
Despite the difficulties, such as the regulatory issues involving Binance and its founder, Changpeng Zhao, who pleaded guilty in November 2023 to violating U.S. money laundering laws, the sector continues to grow.
According to Akangbe, the strength and adoption of any technology largely depend on the vigor of its community.
The constant attention of crypto projects to solving community problems. In particular, regarding remittances and international payments, indicates a positive growth year after year.
Akangbe stated the following about it:
“With the type of communities that are forming around various cryptographic projects, we are closer than ever to mainstream adoption.”
His comment follows a recent series of meetings of the Solana Allstars Nigeria community in various parts of the country, demonstrating the thriving Solana community in Africa.
Solana leading the adoption of Web3 in Africa
The Solana Foundation has initiated several activities, such as meetups, hackathons, and educational workshops, which have integrated many Africans into the Solana ecosystem.
These initiatives strengthen the community involvement and promote the practical adoption of blockchain technology.
Various decentralized groups around the world promote Solana, with the Solana Allstars team in Nigeria recently emerging as one of the most active Web3 adoption groups.
Akangbe noted that these efforts shift users’ attention from price movements to the real utility of Solana projects.
Furthermore, recently there has been an increase in speculations about the approval of a spot exchange-traded fund (ETF) for Solana (SOL) in the United States.
According to Bloomberg analyst Eric Balchunas, the ETF could become a reality only with a change in the US administration and the leadership of the Securities and Exchange Commission.
Several ETF issuers have filed applications for a spot Solana ETF. On June 28, 21Shares filed an S-1 application with the SEC just one day after the ETF issuer VanEck.
The growth of Solana in the second quarter of 2024
In the second quarter of 2024, Solana recorded significant growth in several key metrics. A recent report by Coin98 Analytics highlights how Solana’s transaction fees and revenues have grown considerably.
Specifically, surpassing 26 million dollars, a surprising increase of 42 times compared to the previous year. Additionally, the blockchain recorded a trading volume of 292 billion dollars, a growth of seven times compared to the same period in 2023.
During the second quarter, Solana handled an incredible number of 15.3 billion transactions. The daily active addresses on the network exceeded 900,000, marking an increase of 499% compared to the previous year.
Furthermore, the total value locked (TVL) on the blockchain has increased by over 1000% year-on-year, indicating strong growth in DeFi activities.
The creation of new NFT on Solana has reached record levels, with over 98 million new NFT minted, an increase of 54 times compared to the previous year.
In the second quarter of 2024, the platform recorded 1.4 million unique NFT buyers and 678,000 sellers, highlighting a lively activity in the NFT market.
After a brief decline at the beginning of the new quarter, the price of SOL has regained upward momentum. According to CoinMarketCap, the price of SOL has increased by over 3% in the last week, settling at around $140.57.
Furthermore, the crypto has maintained a market capitalization above $65 billion, positioning it as the fifth largest cryptocurrency.
The analysis of the daily chart of Solana shows contrasting technical signals. The MACD histogram indicates a slight bull predominance.
On the other hand, the Chaikin Money Flow (CMF) shows an increase, suggesting an inflow of capital into the market. However, the relative strength index (RSI) is trending downwards, indicating potential bear pressures.