1/ @solana, known for its low transaction costs and quick confirmation times, has found its strength in consumer products with lower-value transactions.
@0xallyzach dives into some key insights and trends shaping Solana's ecosystem and user activity. 🧵
2/ Despite the decline in on-chain liquidity, @solana's developer ecosystem has shown resilience.
They have been actively building new functionalities, especially in the consumer sector, including programmable #NFTs and compressed NFTs.
3/ While @solana's TVL has depreciated since the beginning of 2022, it's important to note that TVL is primarily a measure for #DeFi protocols.
Solana's focus on consumer applications has led to a shift in user activity away from DeFi and toward consumer protocols.
4/ The @solana landscape continues to evolve, with a transition from DEXs and NFT markets to emerging consumer applications.
The rise of gateway interactions from gaming applications and the introduction of new consumer platforms indicate a changing user preference.
5/ @solana has successfully attracted new users, but long-term user retention remains a challenge.
To sustain growth, Solana needs more compelling and distinctive applications that provide a captivating user experience.
6/ Examining historical usage by sector, protocol ecosystem connections, and gateway applications provides insights into the types of applications driving @solana's usage.
This analysis can help identify new application specializations that could revive the network.
7/ @solana's user activity has seen a decline in #DeFi applications but a surge in consumer protocols.
The ecosystem's growth, even during the bear market, offers users a wide variety of activities. Let's explore the key players contributing to Solana's short-term retention.
8/ @tensor_hq, the leading NFT trading platform, has made waves on @solana.
With its innovative features, feeless trading, and airdrop mechanism, TensorSwap has attracted significant attention from the NFT community.
9/ #NFT lending platforms, like @SharkyFi, have experienced a surge in transaction activity on @solana.
These platforms demonstrate impressive retention rates, bringing changes to the financial dynamics surrounding NFTs.
10/ @saydialect, a messaging platform on @solana, has quickly gained popularity by leveraging the platform's #NFT compression capabilities.
With a high retention rate and new partnerships, Dialect showcases the potential for consumer applications within the Solana ecosystem.
11/ The @solana application ecosystem has undergone a significant transformation, shifting from #DeFi to consumer-centric applications.
Solana's infrastructure advantages and low unit costs position it favorably for consumer apps. Differentiation and user retention remain key.
12/ Solana's journey reflects both challenges and opportunities.
1/ The crypto space's evolution has necessitated stronger server infrastructure to meet the increasing performance requirements of blockchains and their applications.
@Old_Samster dives into why advanced physical infrastructure is crucial.👇🧵
@Old_Samster @Filecoin @sphere_labs @akashnet_ 2/ Newer chains like @avax and @Solana demand significantly higher processing power compared to @Ethereum.
This has driven validators towards being hosted in data centers, given their increased demand for processing power, low latency, and high uptime.
3/ Decentralized storage networks (DSNs) and compute networks face similar challenges.
Ordinary people contributing idle storage space isn't enough for commercializing DSNs. Data centers become indispensable for low latency and exceptional uptime.
1/ Scalability is a key factor in the crypto space, with the modular approach gaining popularity. However, @Solana has taken a contrarian stance.
@kelxyz_ explains how @jump_firedancer, a validator client developed by @jump_ aims to enhance Solana's monolithic approach.🧵
2/ @jump_firedancer's first milestone, "fd_quic," demonstrated impressive transaction propagation throughput of 1M transactions per second (TPS) in initial performance tests.
But there's more work to be done to achieve the full potential of Firedancer.
3/ If successful, @jump_firedancer could unlock blue ocean markets for the @Solana ecosystem by offering unprecedented throughput, composability, and low costs.
However, challenges in execution, timing, and competition pose risks to its adoption and success.
+Dynamic Energy Model resulted in revenue up 65.5%
+Circulating Mcap of $TRX increased by 18.1%
+Prominent protocols #justlend & #juststables saw TVL increase at 26% and 21% respectively
1/ In a bear market, it's crucial to focus on long-term market developments and product announcements to understand what may support or drive new waves of app development.
2/ Aligned, a high-performance compute provider, predicts the zero-knowledge proofs (ZKPs) market to reach $10B by 2030.
ZKPs verify computations and ensure privacy in transactions. #Ethereum is expected to capture 66% of the market.
3/ @LensProtocol, a decentralized social graph protocol, introduced Momoka to decrease transaction costs and improve stability.
Lens has seen a 75% decrease in transaction costs, making consumer applications more viable. Momoka is a game-changer for building foundational layers.
2/ The crypto market rebounded in Q1'23, with the market cap of featured Layer-1 (L1) smart-contract platforms increasing by an average of 83% QoQ, but still down 58% YoY.
@ethereum had the highest market cap, over 2x the other networks combined.
2/ @ethereum generated the highest revenue in Q1, driven by its high usage and gas fees. Its revenue was $457M, almost 2.8x the combined revenue of all other featured L1s.
@hedera had the most significant revenue growth, with a 489% increase QoQ, driven by its Consensus Service.