Solana, a popular open source Blockchain that assists smart contracts, has had a significant market performance in recent months. Solana’s NFT sales volume resulted in it being the second-largest protocol at the end of the quarter, according to data from cryptocurrency analytics platform Messari, while Ethereum claimed first position.
Despite the unpredictability in network utilization and infrastructure that emerged at the end of the quarter, the smart contract platform welcomed new NFs in the first quarter. The NFT market reacted well, with sales exceeding a billion.
The network’s diversification of TLV across different DeFi applications, such as the enhancement of the user experience with the Phantom mobile wallet, as well as the launch of different applications within the network that were not in the DeFi space, all played a significant role in Solana’s growth.
However, there was some resistance on the network, as network failure occurred once again. The network was taken down for 8 hours on May 2nd, and was only brought back up when network validators performed a cluster restart. This is one of numerous examples that have been linked to high network congestion. Solana has experienced an increase in several measures throughout the final quarter of this year. Similarly, certain downward movements have emerged.
While the network’s market cap and revenue fell by 30% and 43.5 percent, respectively, Messari notes in its report that usage continued to rise, as measured by average active unique fee payers (+28.4 percent), average transactions per second (+94.8 percent), and total average daily transactions (+4.2 percent).
Furthermore, the decline in income creation reflects the drop in average transaction fees, which was -44.8 percent, according to the study. Revenue was also down as a result of the poor network performance. This was identified due to a significant drop during times of network congestion.