Author: Builders
Compiled by: Shenchao TechFlow
Solana caused a sensation in the crypto space when it launched on CoinList in 2020, selling 8 million SOL tokens at a price of $0.22. Prior to this, CoinList collaborated with the Solana team for a year to conduct the incentivized testnet Tour de Sol.
Today, the price of SOL tokens has increased nearly 820 times, transforming Solana from a promising emerging project into the most popular blockchain ecosystem in 2024, attracting significant attention from retail investors, institutions, and developers.
To showcase Solana's dominance, let's take a look at their recent growth:
1. User growth
In 2024, on-chain activity on Solana grew by nearly 1900%, with monthly active addresses reaching 100 million. In comparison, Base had 22 million monthly active addresses, while the total for all EVM chains was 52 million.
2. TVL & DEX trading volume surges
In October 2024, Solana's total locked value (TVL) reached a multi-month high of nearly $7 billion. The top five decentralized applications (dApps) by TVL include:
Jito ($247 million TVL): Liquid staking
Kamino Finance ($172 million TVL): Liquidity provider
Jupiter Exchange ($157 million TVL): DEX
Raydium ($153 million TVL): DEX and Automated Market Maker
Marinade Finance ($964.08 million TVL): Liquid staking
Meanwhile, since August 2023, the average daily DEX trading volume has been steadily increasing, showing significant acceleration at the beginning of 2024. At peak times, Solana's DEX trading volume sometimes matched or even exceeded that of Ethereum.
3. Rising transaction fees
Before December 2023, Solana's monthly transaction fee market share never exceeded 1.5%. Since April 2024, Solana's transaction fee market share has consistently remained above 10%, peaking at 25% in July. Transaction fees directly reflect the level of user participation in valuable economic activities, their willingness to pay for execution, and the ability of validators to profit.
4. Memecoin craze
Solana has become the preferred chain for memecoins. For example, the tokens Popcat (POPCAT) and dogwifhat (WIF) surged by 12,882% and 1,108% respectively from January to September 2024. Memecoin developers choose Solana primarily due to its high throughput, low-cost transaction processing capabilities, and a thriving community of memecoin traders. This surge in memecoin launches has driven Solana's network activity to grow by 151% this year. Additionally, meme tokens accounted for 77.8% of the recent trading volume on Solana-based decentralized exchanges.
5. Ecosystem financing
In the third quarter of 2024, Solana-based projects raised $173 million, and the registration for the second Colosseum hackathon increased by 36% compared to the first.
6. Institutional interest accelerates
Franklin Templeton, Securitize (BlackRock's BUIDL tokenization partner), and Société Générale have announced that they will soon launch Solana-based projects. Meanwhile, companies like Jump Crypto and Multicoin Capital have also increased their involvement in the Solana ecosystem, providing liquidity and enhancing long-term confidence.
7. Mobile dApp
To reach millions of users, dApps need to meet user demands on mobile. Jupiter, DRiP, and PhotoFinish LIVE have announced the launch of mobile applications, while Solana Mobile's Seeker and Jambo's JamboPhone 2 are launching crypto-native mobile devices.
8. DePIN growth
Projects like Helium (over 1 million hotspots), Hivemapper (over 7.5 million kilometers mapped), and Render Network are leveraging Solana's infrastructure to showcase real-world applications outside of the EVM ecosystem, emphasizing Solana's important role in decentralized physical infrastructure.
Solana's rise has sparked discussions about whether it has the potential to surpass Ethereum's market cap in the near future.
Can SOL surpass ETH? Time will tell. Please follow the next market dynamics on CoinList.
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