A current report by Pantera Capital highlighted Solana’s (SOL) potential to turn into a dominant participant within the blockchain ecosystem, drawing parallels between its monolithic structure and Apple’s macOS.
Authored by Common Associate Franklin Bi, Portfolio Supervisor Cosmo Jiang, and Funding Analyst Eric Wallach, the report delves into Solana’s rising affect and its implications for the way forward for blockchain expertise.
In keeping with the report, the blockchain ecosystem is predicted to converge round a number of dominant platforms, pushed by developer preferences, and Solana’s built-in method is poised to seize a major share of this consolidation.
Pantera known as builders the “root” of the blockchain ecosystem, shaping crypto broadly and appearing as clients who construct functions that drive blockspace demand. Consequently, blockchain use might converge round a small oligopoly of chains, just like Home windows, MacOS, and Linux within the desktop pc market.
Monolithic architechture
In keeping with Pantera, Solana’s monolithic design gives a seamless person expertise, quicker innovation, and enhanced safety, making it a gorgeous selection for builders and end-users alike. Solana’s capabilities are enabling modern functions throughout numerous sectors, from content material distribution and decentralized mapping to capital-efficient monetary markets.
Traditionally, Ethereum has been the main platform for blockchain improvement, commanding 70-80% of developer exercise. Nonetheless, Solana is quickly gaining floor, the report mentioned.
It in contrast Solana’s rise to Apple’s breakthrough towards Microsoft within the early desktop pc market, highlighting its monolithic structure as a key differentiator. This method permits the community to optimize each part of its blockchain, providing important advantages over modular blockchains like Ethereum and Cosmos.
Pantera mentioned Solana’s comparable method supplies a seamless UX that eliminates the necessity to bridge between chains and gives quicker innovation and product upgrades. It additionally supplies excessive safety resulting from a single-chain design just like Apple’s “tight management over its ecosystem.”
Development throughout
Solana has seen progress in different classes. Pantera famous Solana’s distinctive handle depend rose from 14,000 in October 2020 to 1.34 million as of March.
Precedence charges have grown from $100,000 month-to-month in mid-2023 to $60 million in March, signifying the “depth of demand for block house on Solana.”
Solana accounted for 85% of all new tokens on DEXs in Might, up from 50% a yr in the past, amid “explosive progress” pushed by memecoin exercise. Pantera mentioned it is a signal of sturdy retail utilization.
The community’s share of DEX volumes has grown from 0% in early 2021 to 24% in Might — capturing over 60% of incremental DEX quantity in the course of the month.
In the meantime, the highest pockets on the community, Phantom, briefly rose to the highest spot in numerous iOS app retailer classes and have become probably the most downloaded app in late Might and early June. Pantera known as this a “exceptional feat” and an indication of mainstream adoption, relating it as soon as once more to the memecoin buying and selling growth.
Solana’s complete financial worth, or transaction charges plus most extractable worth (MEV), has surpassed 32% of the identical metric on Ethereum. The pattern has “actual financial worth seize for SOL token holders” and attracts stakers. Moreover, it can enhance decentralization and safety.
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