Solana: A Quick Evaluation Of How The Blockchain Performed In Q3 This Year
October 29 2022 - 1:10PM
NEWSBTC
The crypto bear market that began in May has hurt Solana just
as much as the rest of the market. CoinGecko reported a massive
16.4 percent increase, and the price of SOL is now at
$32.27 at the time of writing. Messari’s most recent quarter
on quarter performance evaluation of the Solana network provided
illumination into the L1’s inner workings, thus it’s possible that
this is the case. Despite a generally pessimistic market, the study
highlighted very encouraging performance for the token in the third
quarter. However, Q3 was a rough quarter for Solana, like it was
for most cryptocurrencies, and this could have an impact on the
data Messari reported. In general, Solana’s tenacity is
demonstrated by the fact that it is still expanding its network and
implementing its growth strategy. Related Reading: Why Bitcoin
(BTC) Could Not Surpass Litecoin (LTC) In This Key Area Solana
Network Activity Up Messari reports that there was an increase in
network activity at SOL. The daily average number of transactions
that do not involve a vote increased by nearly 70 percent
from 20.544 million in the second quarter. Chart: Messari In
addition, the number of transactions processed per second (TPS)
increased by over 40.4% from Q2’s 2,310 TPS. It’s important to
note, though, that transaction fees have been going down. For
Solana, transaction fees have been falling steadily since the end
of 2021, the research claims. From $0.0005 to $0.0003, this
represents a 41.9% drop, making Solana more appealing to developers
who seek to build dApps on a low-fee L1 chain with rapid
performance. However, when network fees drop, revenue declines as
well. Solana continues to endure a gradual reduction in quarterly
revenue since Q4 2021. Chart: Messari Sustaining Long-Term
Stability Solana concluded the second quarter with quarterly sales
of $6.45 million, whereas the network ended the third quarter with
a meager quarterly revenue of $4.832 million. Solana also saw
expansion in the network’s NFT sector. In the third quarter, there
was a 19.3% increase in the number of newly issued NFTs. However,
this is counterbalanced by a reduction in both NFT buyers and
sellers. On the basis of the quantitative and qualitative
information supplied by Messari, Solana’s future remains bright.
Messari underlined the emergence of the core user base that will
sustain SOL’s long-term stability in light of earlier network
issues. DeFi in Solana continues to thrive despite a reduction in
staking yield and a continuing decline in TVL data. Despite the
recent increase in SOL’s price, investors should remain cautious,
as deteriorating metrics may affect the network’s future
performance. Related Reading: Shiba Inu Facing Tough Hurdles For
Weeks – How Could SHIB Overcome These? SOL market cap at $11.8
billion on the weekend chart | Featured image from Selvan B -
Unsplash, Chart: TradingView.com Disclaimer: The analysis
represents the author's personal knowledge and should not be
construed as investment advice.
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