Solana: Can this metric help SOL in its ongoing fight against market uncertainty?

  • The Solana ecosystem has shown positive growth with the adoption of local market fees
  • Developer activity continued to increase on Solana while TVL declined

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

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

One of the reasons for the growth of the Solana ecosystem could be the adoption of the network in the local fresh market. The introduction of the local fee market allowed users to send priority fees to validators to prioritize their transactions. This resulted in reduced spam and nodes were able to make better use of Solana’s block space.

Developers remain interested in Solana

In good news, developers have shown interest 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 the price drop. Thus, there has been an increase in the number of contributions made to Solana’s GitHub.

The growing number of developers and the resulting development activities could facilitate the transition from TIPINs (Token Incentivized Physical Infrastructure Networks) to the Solana network. TIPINs primarily use symbolic rewards to incentivize individuals to perform real-world activities.

The emergence of the TIPINs would therefore be a key factor in Solana’s growing ecosystem. TIPINs such as the Helium network, Hivemapper, and Teleportation could bring more users into the Solana ecosystem.

The NFT angle

The NFT market has been one of the few areas where Solana has experienced positive and consistent growth. The growing interest in Solana NFTs could contribute massively to the future of the Solana ecosystem.

Of Solana floorthe data, it was observed that the Solana Blue Chip Index has moved in a positive direction over the past 30 days. Along with this, the total floor value of Solana’s NFTs also increased. Solana’s total floor value had risen from $154 million to $253 million last month.

Source: Floor Solana

However, despite the improvements seen in the Solana ecosystem, its TVL has been massively affected over the past month.

Based on information collected from DefiLlama, Solana’s TVL has increased 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, the revenue received by Solana fell sharply after November 7. Revenue generated has dropped 50% since then, from $52,484 to $26,580 in 40 days.

Source: Token Terminal

It remains to be seen whether the Solana ecosystem can overcome its current hurdles.

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