Solana, the Layer 1 blockchain, has witnessed an astronomical surge in Total Value Locked (TVL), reaching an impressive $1.06 billion. This marks a fivefold increase from the outset of 2023 when the TVL stood at a modest $210 million. Despite this remarkable growth, it peaked in 2021, touching just under $10 billion in TVL, leaving room for further expansion, around 10 times its current standing.
Is Solana the Ethereum Killer Or Just Another L1 Blockchain?
Web3 Writer and threador Jake Pahor recently shared insights into Solana’s prowess in a December 2023 research report. Pahor initiated a thought-provoking thread on a platform, raising the question: Is Solana the Ethereum killer or just another Layer 1 blockchain?
One of its key strengths lies in overcoming the synchronization challenge, paving the way for an exceptionally fast blockchain experience constrained only by network bandwidth. Unlike Bitcoin and Ethereum, with transaction throughput capped at 15 transactions per second, Solana boasts an impressive capability of over 3,000 transactions per second, coupled with minimal gas fees.
After a turbulent 2022, including the FTX incident, Solana is experiencing a renaissance, which has been evident in the past 30 days, where it generated an outstanding $1.85 million in revenue. This positions SOL at 20th place overall and an impressive 5th among other chains.
Solana operates as a proof-of-stake blockchain, boasting a network of over 2,000 validators. With an uncapped maximum supply and a unique disinflationary emission rate, Solana incentivizes stakers and validators through inflationary emissions.
Currently,its inflation rate stands at 6.75%, aligning closely with the staking yield of 6.78%. The native token, $SOL, serves dual purposes, acting as both transaction fees and a means to ensure network security.
With a circulating supply of 427.7 million and a total supply of 565 million, its market cap sits at $31.2 billion, with a fully diluted valuation of $41.2 billion. The treasury, comprising foundation-allocated tokens, represents 10.46% of the total token supply, amounting to an impressive $4.14 billion.
As Solana competes not only against other Layer 1 blockchains but also Layer 2 solutions like Arbitrum, Optimism, and Polygon, it emerges as a frontrunner, establishing a resilient ecosystem of NFTs and decentralized applications.
In a remarkable comeback story of 2023, Solana is set to capitalize on upcoming catalysts, including airdrops, meme coins, Saga phone, and NFT growth, with an overall weighted score standing at an impressive 8.58.
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