According to a Messari tweet on Dec. 17, Solana’s [SOL] ecosystem has shown signs of growth despite broader FUD impacting the crypto market. According to a Messari tweet on Dec. 17, Solana’s [SOL] ecosystem has shown signs of growth despite broader FUD impacting the crypto market.
.@solana's introduction of "Local Fee Markets" allow users to send priority fees to validators to prioritize their transactions.
The result is less spam and more efficient use of blockspace. pic.twitter.com/DAsYKAUWCg
— Messari (@MessariCrypto) December 17, 2022
One of the reasons for the growing Solana ecosystem could be the takeover of the network’s local tariff market. Launching the Local Rates Marketplace allowed users to submit priority rates to validators to prioritize their transactions. This resulted in less spam, and nodes could better use Solana’s block space.
Developers remain interested in Solana
The good news is that developers have been interested in Solana despite volatile market conditions. According to Token Terminal, the number of active developers on the network continued to increase despite the price drop. As a result, the number of contributions to Solana’s GitHub increased.
The growing number of developers and further development activities could help smooth the transition from TIPINs (Token Incentivized Physical Infrastructure Networks) to the Solana network. TIPINs primarily use token rewards to incentivize people to engage in real-world activities. The emergence of TIPINs would be a key factor in Solana’s growing ecosystem. Tips like the Helium Network, Hivemapper, and Teleport could bring more users into the Solana ecosystem.
The NFT angle
The NFT market has been one of the few sectors where Solana has seen consistent growth. The growing interest in Solana NFTs could contribute significantly to the further development of the Solana ecosystem. Solana Floor data showed that the Solana Blue Chip Index had moved positively for 30 days. At the same time, the total minimum value of Solana’s NFTs also increased. Solana’s low total had increased from $154 million last month to $253 million.
Despite the improvements in Solana’s ecosystem, its TVL has taken a major hit over the past month. According to information from DefiLlama, Solana’s TVL has fallen from $1 billion on Nov. 1 to $256 million at the time of this writing. As a result, the fees generated by Solana also fell. According to Token Terminal, revenue collected by Solana dropped dramatically after Nov. 7. Revenue generated has since fallen by 50%, from $52,484 to $26,580 in 40 days.
It is yet to be seen whether Solana’s ecosystem can surpass its obstacles.