Exploring the “New Solana Summer” Phenomenon
Traders and analysts are actively discussing the recent surge in on-chain activity, marking the onset of what is being referred to as the “New Solana Summer.” Key metrics in the Solana ecosystem are experiencing a significant uptick, some even surpassing pre-FTX collapse levels. Notably, the NFTs and meme coin segments seem to be contributing to this remarkable upswing, as per the latest data.
Solana (SOL) Outperforms Competitors in Transactional Volume
In early December 2023, the aggregated on-chain trading volume on the Solana (SOL) blockchain soared above an impressive $240 million per day. This achievement positioned Solana ahead of both Polygon (MATIC) and Optimism (OP), two well-established Ethereum-based Layer 2 solutions, by this crucial metric.
During the same period, Polygon (MATIC) and Optimism (OP) reported daily trading volumes of $137 million and $40 million, respectively. In essence, Solana (SOL) now processes more on-chain transactions than both of these platforms combined.
- Solana (SOL) daily trading volume: $240 million
- Polygon (MATIC) daily trading volume: $137 million
- Optimism (OP) daily trading volume: $40 million
Furthermore, within the last 24 hours, Solana (SOL) surpassed its competitor Avalanche (AVAX) in net value locked in decentralized applications (dApps). Solana’s dApp ecosystem contributed to a total value locked (TVL) of $688 million, surpassing Avalanche (AVAX) with its $660 million TVL. With this momentum, Solana (SOL) is poised to potentially exceed the TVLs of Polygon (MATIC) and Optimism (OP) in the coming days.
Impressive Growth in Solana’s Ecosystem
Over the last month, Solana’s (SOL) TVL has witnessed a remarkable growth of over 60%, concurrent with a 45% surge in SOL’s price. However, it’s important to note that Solana (SOL) still trails behind Arbitrum (ARB), a prominent Ethereum (ETH) Layer 2 solution. Arbitrum (ARB) has amassed an impressive $2.2 billion in TVL, with a daily trading volume exceeding $363 million.
Catalysts Behind Solana’s Resurgence
The resurgence of Solana (SOL) and its network indicators can be attributed to a combination of powerful catalysts. Notably, the interest in Solana-based Ordinals, such as “SolScriptions,” and meme coins has played a significant role in driving the growth of SPL tokens minted on-chain.
Additionally, Solana-based liquid staking protocols like Jito and Marinade Finance have been successful in attracting new customers and liquidity. The decentralized exchanges Raydium and Orca are also gaining substantial traction within the Solana ecosystem.
As previously covered by U.Today, CoinEx Research highlighted the DePIN (Decentralized Physical Infrastructure Networks) sector as another potent catalyst contributing to the resurgence of the Solana (SOL) ecosystem.
