Cryptocurrency

Hype does not always equate to greater adoption, as the on-chain data from the second quarter of 2022 shows Solana (SOL) surpassing Ethereum in users’ daily transactions despite various drawbacks from both macroeconomic conditions and network outages. 

Throughout the second quarter, Solana’s daily transactions consistently increased, ending with more than 40 million daily transactions compared to Ethereum’s 1 million daily transactions between April and June, confirmed Nansen’s State of the Quarter Report.

Solana’s significant increase in daily transactions was observed on daily non-vote transactions when compared to Ethereum — despite sporting higher volatility. On-chain data revealed that decentralized exchanges (DEXs) such as Mango Markets and Serum and Solana-based decentralized oracle network Switchboard were among the top decentralized apps (DApps) contributing to the spike in daily transactions.

When considering vote transactions, Solana recorded a range of roughly 100 million to 200 million transactions per day, which was supported by a spike in the total number of wallets — from around 400,000 wallets to nearly 1 million toward the end of May 2022.

Solana’s explosive growth can be attributed to a series of funding from mid-2022 made to support the GameFi, decentralized finance (DeFi) and nonfungible token (NFT) ecosystems.

On an end note, Mega Septiandara, a research analyst at Nansen, stated that “Whether it’s the establishment of the Korea grant and investment fund, or the numerous upcoming events that welcome new builders and users, the Solana ecosystem is thriving.”

Related: Network outages have been Solana’s ‘curse,’ says co-founder

A recent governance proposal from October 2022 highlighted the possibility of Helium, an Internet of Things (IoT) blockchain network, transitioning to Solana.

As Cointelegraph reported, Helium developers recommended the shift to “improve operational efficiency and scalability.” Emphasizing the need to fix a number of technical issues to improve the network’s capabilities, the developer community stated:

“In the last several months of the network, both have been challenging for network participants with much reduced proof-of-coverage activity due to network size and blockchain/validator load, and packet delivery issues.”

If passed, Helium-based HNT, IOT and MOBILE tokens and Data Credits (DCs) would also be transferred to the Solana blockchain.

Articles You May Like

Anatomy of a deal: the University of Chicago’s Midwest winner
UK inflation accelerates sharply to 2.3% in October
Cathie Wood says her ‘volatile’ ARK Innovation fund shouldn’t be a ‘huge slice of any portfolio’
Anatomy of a deal: Calcasieu Bridge’s public-private partnership winner
Gautam Adani indicted in the US for alleged bribery scheme