Solana Gains Ground

Solana Gains Ground


By Jakub Lazurek

21 Jun 2024 (27 days ago)

2 min read


Solana, likened to Apple's macOS, has rapidly increased its market share and developer activity, capturing 60% of DEX trading volume growth.

Solana has rapidly increased its developer activity and market share, emerging as a significant competitor to Ethereum. With its monolithic architecture focused on optimizing blockchain components, experts compare Solana to Apple’s macOS, highlighting its innovation and growth.

Solana's ecosystem is now a preferred platform for launching new tokens, especially meme coins. A "Blockchain Letter" from Pantera Capital executives—Franklin Bi, Cosmo Jiang, and Eric Wallach—notes Solana's significant market share gain, challenging Ethereum’s dominance, which holds a 70-80% share of the developer market.

Pantera executives compare Solana's rise to Apple’s breakthrough in the desktop market dominated by Microsoft. Solana’s integrated architecture optimizes blockchain components, similar to Apple’s seamless integration of hardware and software in macOS. This approach leads to a better user experience, faster innovation, and improved security.

Solana’s architectural strengths make it an attractive alternative to blockchains like Ethereum and Cosmos. Its high-performance network supports content distribution, decentralized infrastructure networks (DePIN), and central limit order books (CLOBs). This efficiency allows for the creation of capital-efficient financial markets, such as Phoenix and MarginFi.

Research from March 2024 also compares Solana to Apple, emphasizing its focus on leveraging hardware for Web3 improvements. Solana’s network performance and community engagement set it apart from competitors. Strategic partnerships and continuous technical improvements further highlight Solana’s leadership in blockchain-financial system integration.

Pantera's letter also notes Solana’s significant growth in users and transaction fees. Solana has become the top choice for retail users and meme coin traders, surpassing Ethereum’s NFT dominance. From 2020 to 2023, Solana’s unique active addresses increased by 1,342%, growing from 14,000 to 202,000. By 2024, this number reached 1.34 million, indicating strong user activity growth.

The increasing dominance of Solana's wallet, Phantom, in iOS app rankings, reflects its growing retail user base. The influx of retail users is driven by the meme coin trading boom on Solana DEXs. Since 2021, Solana's share of DEX trading volume has increased by over 24%, capturing more than 60% of the incremental volume in May 2024 alone. This momentum underscores Solana’s high-performance architecture and rapid market share growth.

In summary, Solana’s rising user activity and DEX volumes have resulted in tangible value for SOL holders. Its innovative architecture, strategic growth, and increasing retail adoption make Solana a strong contender in the blockchain industry. As Solana expands its ecosystem and attracts new users, its role in the blockchain sector will continue to grow.

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