- Solana’s network activity began to surge.
- However, its earnings continued to decline.
Solana [SOL] has seen extremely turbulent times in the past. With a large number of downtimes and various prominent NFTs migrating to other protocols, the odds were stacked against the protocol.
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Will Solana make a comeback?
Despite the failures, there was a surge in activity on the network. Even though the surge in Solana’s activity was high, it wasn’t enough to keep up with competitors on the network such as Ethereum [ETH] and Arbitrum [ARB].
However, according to Messari’s data, that could change soon.
Many popular dApps on the network, such as Magic Eden, Jupiter and Wormhole currently do not have native tokens. If they were to launch their tokens in the future, it would drive high activity on Solana, resulting in higher amounts of fees accrued by the network.
According to Messari, athough these dApps haven’t explicitly announced plans to launch tokens, recent moves from competitors and newly launched rewards programs suggest that such launches are likely, as is common for successful app protocols.
By comparing benchmark valuation indicators, it is estimated that the potential market cap for crypto apps is high. They projected a $1 billion – $2.5 billion growth for top token less projects on Solana.
The launch of tokens will also impact Solana’s market cap. It was found that fee payers grow at twice the rate of market cap, estimating 210K-290K new users following the new project launch.
Source: Messari
Troubling Earnings
However, at press time, the earnings generated by the network took a hit. According to data provided by token terminal, the overall earnings of Solana declined by 17.9% in the last 30 days.
Realistic or not, here’s SOL’s market cap in BTC terms
This decline in earnings did not stop developments from occurring on the Solana network. The number of code commits continued to increase on GitHub.
This spike in development activity indicated that new upgrades and updates are on their way on the Solana network. These updates could attract new users on the network and help generate more revenue and compete with other larger protocols in the cryptocurrency space.
Source: token terminal
