Unlocking Mass Adoption: Insights from an Expert on Solana’s Potential

Thor Hartvigsen’s Analysis

Thor Hartvigsen, a DeFi researcher and Business Development professional at Redacted Cartel, shared a detailed analysis into the potential of Solana to achieve mass adoption today. Hartvigsen’s examination focuses on the technical aspects and key developments (apart from price speculation) within the SOL ecosystem that might pave the way for its widespread acceptance.

Parallel Execution, Solang, Eclipse And Neon

A significant feature of Solana is its ability to process multiple transactions concurrently through ‘parallel execution’. This method stands in contrast to the sequential processing found in many other blockchains like Ethereum.

Hartvigsen notes, “This parallelism in processing ensures that activities like large NFT mints, which might spike transaction fees, do not adversely affect the cost of transactions for DeFi users, as these are handled in separate threads.”

  • Solang, a compiler on Solana, enables developers to build dApps using Solidity, easing the transition from EVMs to SVM.
  • Eclipse, a layer-2 rollup, aims to bring Solana’s high throughput to Ethereum, creating a robust cross-chain solution.
  • The NeonVM integrates EVM with SOL’s framework, allowing developers to deploy Ethereum dApps on Solana.

Solana’s DeFi Ecosystem

The Solana DeFi ecosystem has shown notable growth in recent months, particularly in areas like lending, DEX volumes, and liquid staking. As Ethereum’s growth story has shown, DeFi could become an important pillar for the adoption of SOL.

Hartvigsen highlights several key protocols:

  • Jito, Solana’s largest Liquid Staking Derivative (LSD) protocol, offers a stable yield (~6.88%) on SOL tokens.
  • Jupiter, a DEX aggregator, handles most of the swap volume on Solana ($3.9 billion in the past 30 days).
  • Marginfi, known as the largest lending market, implemented a ‘points system’ for liquidity providers.

While Hartvigsen himself does not draw a conclusion, his analysis shows that the Solana ecosystem is extremely well positioned to continue to grow and compete with Ethereum.

At press time, SOL traded at $60.81. In recent weeks, the SOL price found support at the 100-week EMA and is eyeing a weekly close above the 0.236 Fibonacci retracement level at $60.00.

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