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Solana Dominates the Market: How Fast Will Gas Prices Crash?
Solana outperformed Polygon and Ethereum in TPS. Faster transaction processing speeds are crucial for blockchain scalability and broad adoption.
Closer inspection shows a more complex image. Daily active addresses—unique users engaging with the network—have grown, but daily transaction count has not.
This shows that more people are joining the Solana ecosystem but not transacting much. Is this just crypto tourists testing the waters, or something else?
Fees Fall, But Are They Sustainable?
Another intriguing development is Solana's declining transaction costs. This may appear nice for users, but it might be dangerous. The transactions may be simpler and need cheaper costs.
The crypto market is worth $2.5 trillion. TradingView chart
This may restrict Solana's long-term income. A decline in costs may indicate less network congestion, explaining the unchanging daily transaction count.
The expansion of Solana's Decentralized Finance (DeFi) Total Value Locked is encouraging. DeFi provides blockchain-based financial services, and TVL indicates the entire amount of crypto assets deposited in DeFi protocols.
Solana's increased TVL suggests its expanding usage in DeFi, where users may lock up bitcoin for interest or other financial operations. This bodes well for the Solana ecology.
Technical indicators like the Money Flow Index warn of prudence. This indication implies a SOL price correction, suggesting the rally may not last.
Investors concern Solana's long-term prospects due to inconsistent network activity indications and a falling charge structure.
A Blockchain in High Gear, Uncertain Destination
Solana excels in transaction speeds and DeFi. Tokenomics and network activity raise concerns about its long-term sustainability.
According to Coingecko, SOL was trading at $185, up 7.1% and 26.0% daily and weekly. This price spike and the network's fast transaction speeds suggest a huge project.
