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A current report by Pantera Capital highlighted Solana’s (SOL) potential to turn 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 know-how.
In line with the report, the blockchain ecosystem is anticipated 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 known as builders the “root” of the blockchain ecosystem, shaping crypto broadly and performing as clients who construct purposes that drive blockspace demand. Because of this, blockchain use might converge round a small oligopoly of chains, much like Home windows, MacOS, and Linux within the desktop pc market.
Monolithic architechture
In line with Pantera, Solana’s monolithic design presents a seamless consumer expertise, sooner innovation, and enhanced safety, making it a lovely selection for builders and end-users alike. Solana’s capabilities are enabling modern purposes throughout numerous sectors, from content material distribution and decentralized mapping to capital-efficient monetary markets.
Traditionally, Ethereum has been the main platform for blockchain improvement, commanding 70-80% of developer exercise. Nonetheless, Solana is quickly gaining floor, the report mentioned.
It in contrast Solana’s rise to Apple’s breakthrough in opposition to Microsoft within the early desktop pc market, highlighting its monolithic structure as a key differentiator. This strategy permits the community to optimize each part of its blockchain, providing vital advantages over modular blockchains like Ethereum and Cosmos.
Pantera mentioned Solana’s comparable strategy offers a seamless UX that eliminates the necessity to bridge between chains and presents sooner innovation and product upgrades. It additionally offers excessive safety resulting from a single-chain design much like Apple’s “tight management over its ecosystem.”
Progress 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 Could, up from 50% a yr in the past, amid “explosive progress” pushed by memecoin exercise. Pantera mentioned it is a signal of robust retail utilization.
The community’s share of DEX volumes has grown from 0% in early 2021 to 24% in Could — 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 numerous iOS app retailer classes and have become probably the most downloaded app in late Could and early June. Pantera known as this a “outstanding feat” and an indication of mainstream adoption, relating it as soon as once more to the memecoin buying and selling growth.
Solana’s whole financial worth, or transaction charges plus most extractable worth (MEV), has surpassed 32% of the identical metric on Ethereum. The development has “actual financial worth seize for SOL token holders” and attracts stakers. Moreover, it can enhance decentralization and safety.
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