Solana Network grows strongly thanks to the support of GameFi & DAO

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Based on a 32-page report released by ByBit, Solana Ecosystem saw strong growth in Q2 thanks to the support of GameFi and DAOs.

Activities DAO increase, market NFT continues to fluctuate, strongly interacting with game fi and market share DeFi decrease in the quarter.

Problems

While there has been steady growth in parts of the network, it is not without problems. There have been two major outages during this time. However, the upgrades to Solana appear to be having a positive impact, as the report states,

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“The network upgrade at the end of Q2 showed significant improvements in reliability and transaction processing.”

Furthermore, the report highlights issues with Solend, Slope Finance, Crema, Nirvana, and Saga as examples of cybersecurity that needs drastic improvement. Several events occurred at the beginning of Q3 but were included as they are likely to affect Solana's growth going forward.

Prices fell from $146 in Q1 to as low as $26 in Q2 along with a broader market sell-off. However, $SOL has also dropped 46% against Bitcoin, showing that Solana's speculation is somewhat independent of the overall market.

Positive point

However, regarding on-chain activity, the statistics support the report's belief that Solana is seeing network growth regardless of bearish pressure. The programs work daily and the number of validators is steadily increasing, as shown below.

Source: SolanaFM

The number of active users interacting with NFT on Solana is also very good compared to OpenSea. The number of transactions on Magic Eden is also five times more than on OpenSea, although the value of transactions is similar across both ecosystems.

Source: SolanaFM

There has been an increase in DAO activity, as the report indicates that “Solana has caught up with Ethereum in the number of DAOs”

“Overall, DAO generator Realms has seen a significant increase in DAOs on Solana to over 800+ DAOs at the time of writing, compared to over 100 in January 1.”

DAOs on Solana grew from 1.750 to about 2.500 between March and June 3, “showing a thriving DAO landscape on Solana.” The report used data on Solana multi-subscriber wallets to ascertain the increase in DAO activity.

Source: DappRadar

Decline

Along with the drop in the price of SOL, the total value locked into Solana DeFi dropped significantly from $8 billion in Q1 to just $2,5 billion in Q2.

Source: DeFiLlama

Furthermore, while the use of NFT marketplaces may be stable, some popular NFT projects, such as STEPN, have seen user migration. The value of STEPN's GST has dropped by 99,5% throughout 2022 amid a spike in player numbers and limited use of the in-game token.

Source: CoinGecko

It should be noted that throughout GameFi, Solana has seen an increase in market share compared to other chains. The report attributes this to “strong user statistics from Gameta, Solana ranked as the top blockchain game starting Q2.”

Source: Footprint Analytics

The report concludes by specifying that concerns about Solana's network instability remain, but Bybit is "optimistic that new upgrades announced in the quarter will enhance the stability of the network and reduce the possibility of network loss in the future. "

About Bybit

Bybit is a cryptocurrency exchange founded in March 3, providing a professional platform where crypto traders can find an extremely fast execution engine, customer service great and multilingual community support.

Bybit provides groundbreaking spot and derivatives trading services, mining and staking products, NFT marketplace and API support to retail traders and institutional customers around the world, and is committed to strives to become the most trusted platform in the emerging virtual asset segment.

Bybit is proud to be a partner of the Formula 1 (F1) racing team, Oracle Red Bull Racing, eSports teams NAVI, Astralis, Alliance, Virtus.pro and Oracle Red Bull Racing Esports, and the football teams of association Borussia Dortmund and Avispa Fukuoka.

For more details, please visit: https://www.bybit.com/

For updates, please follow Bybit's social media platforms on:

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