The recent negative news about cryptocurrencies has caused the market to fall into panic. The short-term negative news will also be accompanied by the accumulation of market momentum. For investors, it is a good opportunity to deploy oversold potential projects now. As two major ecosystems worth paying attention to in this round of bull market, Solana and TON have become the focus of many investors due to their rapid development and money-making effect.
Among them, Solana's ecosystem is more mature than TON's, and Solana has advantages that cannot be ignored in terms of innovation and mass adoption. As the Ethereum ETF is about to be listed, VanEck also submitted an application for Solana ETF to the SEC in June, and Solana has also begun to attract the attention of traditional capital. As Matthew Sigel, head of digital assets at VanEck, said: The combination of high throughput, low fees, strong security and a strong community atmosphere makes Solana an attractive choice for exchange-traded funds, providing investors with a versatile and innovative open source ecosystem.
Solana Ecosystem Potential
On the technical level, the launch of Solana Blinks and Solana Actions has increased developers' interest in Solana. The launch of Solana Actions and Blinks has reduced the difficulty for users to use the Solana blockchain for on-chain activities in terms of underlying code. This will also promote Solana to a wider range of application scenarios, including DeFi, NFT markets, games, DAO governance, RWA and other tracks, and promote more Web2 users to use Web3 blockchain technology conveniently and quickly. For projects in the Solana ecosystem, this is also an important opportunity to gain more users and adoption.
For investors, laying out the Soalan ecosystem and seizing opportunities under technological innovation and capital layout will become the focus of attention in the future. This article will sort out the projects in the Solana ecosystem that are worth paying attention to this year for your reference.
Drift Protocol
Drift Protocol integrates RWA and DeFi into the protocol to provide users with diversified DeFi products and experiences. It recently announced in-depth cooperation with ONDO Finance, allowing USDY (notes backed by U.S. Treasury bonds and bank deposits, holders can obtain corresponding returns) and stablecoins such as Ethena-USDe and Mountain-USDM as collateral assets for traders. It is the most widely supported protocol for mainstream RWA assets on the Solana chain.
Diversified products are one of the advantages of Drift Protocol, including derivatives trading, Swap, leveraged spot, lending, etc. With the help of Solana's low gas and fast confirmation, Drift Protocol provides users with extremely low fees and a trading experience comparable to CEX without affecting its own profitability.
Another core advantage is the rapid response and support for the ecosystem. Drift provides pre-market trading and fast listing channels. Hot assets in the ecosystem can be quickly listed and traded on Drift, providing investors with more trading strategies and options. Recently, it was also announced that JLP will be supported as collateral, which is the first in the same field.
Drift's TVL has grown rapidly from $117M to a peak of $385M this year, a 3.3-fold increase. Its cumulative trading volume has reached $32 billion, with a recent 24-hour trading volume of about $220 million and 190,000 active users.
Jupiter
Jupiter is the largest DEX aggregator on Solana. By aggregating the liquidity of multiple decentralized exchanges, it helps users automatically select the best trading path and minimizes Swap transaction slippage and transaction fees. Its daily trading volume once exceeded Uniswap, becoming the first in the entire chain.
The DEX of the Solana chain has the advantages of being fast, cheap and permissionless. Jupiter also provides scheduled automated investment, cross-chain bridges, perpetual contract trading, Launchpad to provide projects with release and online trading services.
Earlier this year, the Jupiter team airdropped JUP tokens to more than 100,000 community users, becoming the largest airdrop event on Solana. Last week, it airdropped $60 million worth of cryptocurrencies to users who actively staked JUP and participated in DAO voting.
Chimney
Kamino is a DeFi project that provides lending and liquidity, while providing users with collateralized lending, and using CLMM (centralized liquidity market makers) to control the availability of borrowed funds. It also provides an automatic deleveraging mechanism and a "protected collateral" function, which protects assets from the risk of borrower default. By integrating lending, liquidity, and leveraged staking into one DeFi product, it provides users with a diverse DeFi experience.
At present, you can pay attention to Kamino's second phase of airdrops. Providing stablecoins for the protocol is the most stable strategy. Among them, PYUSD (a stablecoin launched by payment giant PAYPAL) has an annualized return of up to 18.39% in Kamino, and can get 3 times the Kammino points reward.
As of early July, the TVL on the Kamino chain reached 1.06 billion US dollars, a 6.5-fold increase from 1.47 million at the beginning of the year.
Victory
Jito is a liquidity staking protocol launched in 2022. Users can obtain JitoSOL by staking SOL, and the staking income is directly accumulated in JitoSOL. Jito also provides users with a maximum extractable value function (MEV), and the income from MEV will also be allocated to JitoSOL, which will increase the income relatively speaking.
Currently, Jito's TVL has reached 1.59 billion US dollars, a 2.5-fold increase compared to the beginning of the year. The 24-hour agreement fee is 730,000 US dollars, the cumulative fee reaches 150 million US dollars, and the number of users exceeds 100,000.
TipLinks
TipLinks is a lightweight wallet product that has the same functionality as Solana’s Blinks feature launched on June 25. Anyone with cryptocurrency can create a TipLink and send the link to anyone via any platform (SMS, Discord, email, etc.).
TipLinks only requires a Google account to handle complex crypto transactions. Clicking on a link will easily send crypto assets, even to non-crypto users. The emergence of TipLinks and Blinks technology has completely broken down the barriers between Web2 and Web3. It truly seamlessly links Web2 and Web3 together, providing a seamless crypto payment experience for new crypto users. It lays the foundation for the large-scale adoption of Web3.
Summarize
Judging from the on-chain data, Drift Protocol has 1.7 times the number of users as Jito, and has a high user base. At the same time, the protocol's daily revenue is US$162,000, higher than Jito's US$29,000. The project products cover a wide range, including lending, spot trading, leveraged trading, contract trading, etc. in the DeFi track. Drift's integration with the Solana ecosystem is also relatively advantageous, which will bring more flexibility to Solana DeFi user assets, thereby further enhancing Drift's competitiveness.
Jito and Kamino have obtained a lock-up volume of more than 1 billion US dollars and have become projects that attract funds. The main reason is that Jito's MEV has brought additional income to users, and jitoSOL has also become a high-proportioned pledge token in the Solana ecosystem. Kamino has many innovations in lending, and users' demand for lending has also increased relatively in the bull market.
Jupiter has achieved a higher TVL growth rate, on the one hand because of the advantage of transaction quotes brought by its aggregated liquidity, and on the other hand it is mainly related to its airdrop expectations.
Judging from the current development status, Jito and Jupiter are the projects with the most funds on Solana. Drift Protocol has the highest growth rate of TVL by increasing the types of collateral, aggregated liquidity, and innovatively combining RWA assets with DeFi. On Solana, the combination of RWA and DeFi will have greater room for imagination in the bull market, while creating more value for users and adding many new features to DeFi. Therefore, Drift Protocol will also have more explosive power and development prospects.
TipLinks provides a possibility for the further development of cryptocurrencies and has the potential for explosive growth. In the future, it remains to be seen whether it can withstand the market test in terms of security, usability and composability.
Compared with the ecology of the bull market in 2021, a number of fast-growing popular projects have emerged on Solana in this bull market, including DEX, Liquid Staking, Lending, NFT, RWA and other tracks, which have also quickly followed up and shown a booming development trend. In addition to Solana's technological innovation, its ecological projects have also shown strong appeal to funds and users, as well as potential innovation capabilities. The TVL growth rate of ecological projects is generally more than 2 times, and the number of users has reached hundreds of thousands. This also shows the innovation potential of DeFi on Solana and its growth prospects in this bull market to a certain extent.
