A current report by Pantera Capital highlighted Solana’s (SOL) potential to develop into a dominant participant within the blockchain ecosystem, drawing parallels between its monolithic structure and Apple’s macOS.
Authored by Common Accomplice 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 strategy is poised to seize a big share of this consolidation.
Pantera referred to as builders the “root” of the blockchain ecosystem, shaping crypto broadly and appearing as clients who construct purposes that drive blockspace demand. Consequently, blockchain use may converge round a small oligopoly of chains, much like Home windows, MacOS, and Linux within the desktop laptop market.
Monolithic architechture
In keeping with Pantera, Solana’s monolithic design affords a seamless consumer expertise, quicker innovation, and enhanced safety, making it a lovely selection for builders and end-users alike. Solana’s capabilities are enabling progressive purposes throughout varied sectors, from content material distribution and decentralized mapping to capital-efficient monetary markets.
Traditionally, Ethereum has been the main platform for blockchain growth, commanding 70-80% of developer exercise. Nevertheless, Solana is quickly gaining floor, the report stated.
It in contrast Solana’s rise to Apple’s breakthrough in opposition to Microsoft within the early desktop laptop market, highlighting its monolithic structure as a key differentiator. This strategy permits the community to optimize each element of its blockchain, providing vital advantages over modular blockchains like Ethereum and Cosmos.
Pantera stated Solana’s related strategy gives a seamless UX that eliminates the necessity to bridge between chains and affords quicker innovation and product upgrades. It additionally gives excessive safety as a consequence of a single-chain design much like Apple’s “tight management over its ecosystem.”
Development throughout
Solana has seen progress in different classes. Pantera famous Solana’s distinctive tackle rely 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 12 months in the past, amid “explosive progress” pushed by memecoin exercise. Pantera stated this can be a signal of robust 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 throughout the month.
In the meantime, the highest pockets on the community, Phantom, briefly rose to the highest spot in varied iOS app retailer classes and have become probably the most downloaded app in late Might and early June. Pantera referred to as this a “outstanding feat” and an indication of mainstream adoption, relating it as soon as once more to the memecoin buying and selling increase.
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’s going to enhance decentralization and safety.
