What Is Solana (SOL)?

Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.

To learn more about this project, check out our deep dive of Solana.

The Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.

Because of the innovative hybrid consensus model, Solana enjoys interest from small-time traders and institutional traders alike. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.

INTRODUCTION 1.2

A peek into the Solana ecosystem will reveal that numerous leading blockchain and crypto projects are leveraging Solana’s open protocol. Let’s take a look at the most notable ones.

DeFi

• Serum
• Raydium
• Mango Markets

Stablecoins

1- Tether (USDT)

2- USD Coin (USDC)

METHODOLOGY

IN this dashboard we will discuss about :

• SOLANA STABLECOINS NETFLOWS
• USDC & USDT
• USDT Netflow swap
• USDC NetFlow swap
• Solana ecosystem Daily & Weekly Transfers metrics

SOLANA STABLECOINS NETFLOWS- USDC

OBSERVASION

• According to the diagram of Solana stablecoin USDC, it can be seen that there was a drop of 20 million only in Exchange jupiter aggregator v2, and this is the largest drop among other exchanges, which shows that users have swapped their SOL tokens to another token to avoid the sharp drop of SOL. The value of their money is also preserved.
• Also, in the netflow volume by exchange chart, the volume of 420 million has been removed from exchange jupiter aggregator v2.
• In the USDC swap flow chart, the amount of swap outs in the chart is high, which reached minus 2.6 only on Nov 9.

OBSERVASION

• Also, for Stablecoin USDT, negative 119 million units have been withdrawn from Exchange jupiter aggregator v2.
• The amount of USDT netflow swap has increased by 872K thousand.
• As you can see, on the day of FTX collapse on Nov 9, 34 million was withdrawn from the Solana ecosystem.

USDT

Solana ecosystem transfers

OBSERVASION

• In daily transactions, Solana recorded the highest amount of daily transactions on Sep 28 with 25,000.
• Also, in the weekly metric, I recommend to register the rate of transfer on September 26 to 145 thousand transactions per week.

CONCLUSION

Overall, Solana has built a network that can handle meaningfully more transactions per second than any L1 smart contract blockchain without compromising significantly on security and decentralization. While Solana has not achieved mainstream adoption yet, as more developers begin building on Solana, we can expect demand for the $SOL token to continue to increase. Coupled with the fact that >60% of $SOL tokens are currently staked and are unlikely to flood the market with supply (ceteris paribus), we can expect the price of the $SOL token to continue to increase in the mid to long run.

The rapidly expanding ecosystem powered by high throughput, low transaction fees, and interoperability is helping Solana to grow its ecosystem across different use cases in DeFi, Web3 and NFTs. The continuous community building and engagement efforts of the Solana ecosystem has resulted in a lot of developer interest moving to Solana. Wormhole and other bridges have helped bridge liquidity to Solana allowing for the growth of Solana DeFi vaults and farms.