- Solana’s (SOL) price has gained more than 113 percent YTD to trade around $21.30 on Monday.
- The SOL ecosystem has, however, not fully regained pre-FTX levels.
The Solana (SOL) ecosystem has made tremendous progress since the FTX and Alameda Research implosion late last year. Already, the Solana network made history as the first top blockchain to launch a Web3-centric smartphone phone dubbed Saga Mobile. The Saga mobile intends to revolutionize the crypto industry by providing users with ultimate security. Moreover, Solana’s Saga mobile has an inbuilt Seed Vault, which helps users store their digital assets safely.
In this regard, the Solana blockchain gets to significantly benefit from increased Web3 activity and user confidence. Furthermore, the Solana ecosystem was significantly affected by several outages last year amid increased layer one (L1) blockchains.
Solana Growth Factors at Hand
The Solana ecosystem has a market capitalization of approximately $8.4 billion and an FDV of about $11.47 billion. However, the Solana network is far from dethroning Ethereum as the king of smart contracts in the near future. According to aggregate market data provided by Defillama, the Ethereum network takes pride in more than $28 billion in total value locked (TVL) whilst the Solana ecosystem has about $265 million.
Nevertheless, the Solana core developers and DeFi builders are busy bringing together the ecosystem for the good of the users. In a recent YouTube interview on Token Terminal, Anatoly Yakovenko, Solana cofounder, believes the network can handle hundreds of millions of users. However, Yakovenko challenged the Dapps developers to come up with interoperable and user-friendly decentralized applications for the customers.
Every two years there’s a new generation, so from my perspective, I think we can already handle hundreds of millions of users and we have an abundance of capacity. We don’t have the applications to actually attract those users yet,
He continued to note that the Solana network has attracted top developers including the Helium (HNT), which migrated to the SOL ecosystem earlier this year.
Helium created close to a million IoT (Internet of Things) hot spots, that’s really cool. Think about virtual tokens moving around between people with cryptography impacting the physical world, there’s literally close to a million antennas generated from that, and they’re going to attempt to do the same thing with 5G.
In addition, Yakovenko mentioned Hivemapper, a decentralized map-building tool that taps into Solana’s scalable features.
“Hivemapper, on the other hand, is trying to map the entire world like Google Street View and there are 60 million kilometres in the world. They’re already at [a]2 million kilomet map, they just crossed that, they’re growing,” he added.
When is Ethereum Killer?
In a heated Twitter debate, Yakovenko defended Solana over Ethereum proponents in regard to the blockchain scalability trilemma. As for security, Yakovenko noted that Solana and Ethereum have the same percentage.
Solana has the same 1/N security as eth and is at 50% of the full nodes of ethereum. attack to corrupt all of them is on the same order of difficulty as eth. DMs open
— toly 🇺🇸 (@aeyakovenko) May 6, 2023
In conclusion, Yakovenko noted that Ethereum lacks neutral credibility since its value extraction is too high. Additionally, he noted that the second largest blockchain lacks fundamental philosophical aspects to be considered as a viable layer one.
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