Solana: Can this calculation help SOL in its continued fight against market uncertainty

  • Solana’s ecosystem showed positive growth with the decision on local market fees
  • Developer activity continued to increase at Solana while TVL decreased

According to a tweet by Messari on December 17, despite the general FUD plaguing the crypto market, Solanas [SOL] the ecosystem showed signs of growth.

Read Solana’s [SOL] Price prediction 2023-24

One reason for Solana’s growing ecosystem may be the network’s use of local fee markets. The introduction of the local fee market allowed users to send priority fees to validators to prioritize their transactions. This resulted in a reduction in spam, and nodes could make better use of Solana’s block space.

Developers are still interested in Solana

In a spot of good news, developers were interested in Solana despite volatile market conditions. According to data provided by Token Terminal, the number of active developers on the network continued to increase despite falling prices. Thus, there was an increase in the number of contributions to Solana’s GitHub.

The growing number of developers and subsequent development activity can help facilitate the transition of TIPINs (Token Incentivized Physical Infrastructure Networks) to the Solana network. TIPINs primarily use symbolic rewards to encourage individuals to complete real-world activities.

The emergence of TIPINs will thus be a key factor in Solana’s growing ecosystem. TIPINs such as the Helium network, Hive folders, and Teleporters can bring more users into the Solana ecosystem.

The NFT angle

The NFT market was one of the few sectors where Solana experienced positive and consistent growth. The growing interest in Solana’s NFTs can contribute massively to Solana’s ecosystem going forward.

From Solana Flooringtheir data, it was observed that the Solana Blue Chip Index had been moving in a positive direction for the past 30 days. Along with that, the total floor value for Solana’s NFTs also increased. Solana’s total floor value had gone from $154 million to $253 million in the past month.

Source: Solana Floor

Despite the improvements in the Solana ecosystem, TVL was massively impacted in the last month.

Based on information gathered from DefiLlama, Solana’s TVL fell from $1 billion on November 1 to $256 million at the time of writing.

Subsequently, the fees generated by Solana also decreased. According to Token Terminal, Solana’s collected revenue dropped sharply after November 7. The revenue generated dropped by 50% since then, falling from $52,484 to $26,580 in 40 days.

Source: Token Terminal

It remains to be seen whether Solana’s ecosystem can overcome its current obstacles.

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