Since the collapse of trading companies like FTX in November 2022, the Solana blockchain has seen significant gains and regained investor confidence, with Ethereum developers increasingly migrating to it.
According to a recent analysis by Jack Inabent, Senior Analyst at Bankless, with significant growth in key metrics and a year-to-date SOL increase of 770%, Solana has solidified its position as a top-tier blockchain. nNative teams within the Solana ecosystem have played a major role in its resurgence, but now non-native protocols are seizing the opportunity as well.
The developers are making the hype happen
Solana's comeback, from a low of $8 in December 2022 to a yearly high of $210 in March, is one of the most notable upside trends of this bull cycle. However, the growth of the ecosystem extends beyond the original token holders.
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According to For Inabinet, the developers have delivered on the hype, starting with the PYTH airdrop, the Pyth network's native token. This has motivated users from different ecosystems to explore SOL by mapping tokens to addresses that interact with Pyth oracles across multiple networks.
In addition, the original Solana Liquid staking protocol Jito Labs conducted the airdrop, incentivizing “mass adoption” through points-based incentive systems.
While the original Solana protocols laid the foundation for mainstream adoption of the platform, Ethereum developers are increasingly migrating to SOL. Inabinet highlights that given the significant on-chain activity within Solana, projects are keen to take advantage of this opportunity.
Ethereum developers are flocking to Solana
For example, decentralized computing sharing network Render migrated its token to the Solana Software Library (SPL) standard, and MetaMask introduced Solana compatibility by introducing “Snaps.”
Additionally, according to Inabinet, Aave, the premier lender for Ethereum, has agreed to deploy a minimally viable version of its V3 siled money market through Neon. Ethereum virtual machine (EVM), an Ethereum-compatible development environment built on Solana.
Proposals for standalone deployments, such as the EVM-based GMX perpetual trading platform, demonstrate the growing interest in SOL.
However, the analyst noted that Ethereum and Solana have different approaches to scaling, with Ethereum opting for network fragmentation while Solana prefers a unified state.
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Considering these approaches, Inabinet suggests that Solana's alternative vision for blockchain technology offers attractive features, attracting research developers. Scalability and concentration of use.
However, the analyst warns that developers must take a diversified approach to maximize success and secure market share. Inabinet concluded:
The cryptocurrency industry must overcome a huge chasm of uncertainty in order to progress from infancy to the eventual state where true adoption is achieved, and trillions upon trillions of dollars of traditional assets make their way across the chain. Until then, app developers surrendering to blind loyalty to the chain are leaving money and market share on the table.
As of press time, Sol It has seen a 5% rise in the last 24 hours, resulting in a current trading price of $171, with the next price hurdle at $176.
Featured image from Shutterstock, chart from TradingView.com