A latest report from 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.
Written by Common Companion 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 just a few dominant platforms, pushed by developer preferences, and Solana’s built-in method is poised to seize a good portion of this consolidation.
Pantera known as builders the “root” of the blockchain ecosystem, shaping crypto broadly and appearing as clients who construct functions that drive demand for blockspace. Because of this, blockchain use may converge round a small oligopoly of chains, much like Home windows, MacOS and Linux within the desktop pc market.
Monolithic structure
In line with Pantera, Solana’s monolithic design supplies a seamless person expertise, sooner innovation and improved safety, making it a gorgeous alternative for builders and finish customers alike. Solana’s capabilities allow revolutionary functions throughout industries, from content material distribution and decentralized mapping to capital-efficient monetary markets.
Traditionally, Ethereum has been the main platform for blockchain improvement, accounting for 70-80% of developer exercise. Nevertheless, Solana is rapidly 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 method permits the community to optimize each a part of its blockchain, providing vital benefits over modular blockchains corresponding to Ethereum and Cosmos.
Pantera mentioned Solana’s comparable method supplies a seamless UX that eliminates the necessity to bridge between chains and supplies sooner innovation and product upgrades. It additionally affords a excessive diploma of safety because of its single-chain design, much like Apple’s “tight management over its ecosystem.”
Develop throughout
Solana has seen progress in different classes. Pantera famous that Solana’s variety of distinctive addresses elevated from 14,000 in October 2020 to 1.34 million in March.
Precedence charges have elevated from $100,000 per 30 days in mid-2023 to $60 million in March, indicating 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 12 months in the past, amid “explosive progress” pushed by memecoin exercise. Pantera mentioned it is a signal of sturdy retail use.
The community’s share of DEX volumes has grown from 0% in early 2021 to 24% in Could, representing greater than 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 a number of iOS app retailer classes, changing into essentially the most downloaded app in late Could and early June. Pantera known as this a “outstanding achievement” and an indication of mainstream adoption, once more linking it 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 worth on Ethereum. The pattern has “actual financial worth for SOL token holders” and attracts stakers. Furthermore, it can enhance decentralization and safety.