The crypto bear market that began in May has hurt Solana just as much as the rest of the market. CoinGecko reported a massive 16.4 percent increase, and the price of SOL is now at $32.27 at the time of writing.
Messari’s most recent quarter on quarter performance evaluation of the Solana network provided illumination into the L1’s inner workings, thus it’s possible that this is the case.
The study showed that the token performed well in its third quarter despite a pessimistic market. The quarter ended with Solana reporting a disappointing Q3, as it did for many cryptocurrencies.
In general, Solana’s tenacity is demonstrated by the fact that it is still expanding its network and implementing its growth strategy.
Solana Network Activity Up
Messari says that SOL has seen an increase of network activity. The daily average number of transactions that do not involve a vote increased by nearly 70 percent from 20.544 million in the second quarter.
In addition, the number of transactions processed per second (TPS) increased by over 40.4% from Q2’s 2,310 TPS.
It’s important to note, though, that transaction fees have been going down. According to research, Solana claims that transaction fees have fallen steadily from the 2021 end.
This represents a 41.9% decrease in price, which makes Solana attractive to developers looking to create dApps using a low-fee L1 network with high performance and rapid development.
But, revenues also drop when network charges decrease. Solana has seen a steady decline in its quarterly revenues since Q4 2021.
To sustain long-term stability
Solana ended its second quarter with quarterly sales totalling $6.45 million. However, the network had a disappointing third quarter revenue of $4.832million.
Solana also saw expansion in the network’s NFT sector. The number of NFTs issued in the third quarter saw a 19.3% rise. However, the increase in NFT buyers and sellers is balanced by this.
On the basis of the quantitative and qualitative information supplied by Messari, Solana’s future remains bright. Messari underlined the emergence of the core user base that will sustain SOL’s long-term stability in light of earlier network issues.
DeFi Solana is still thriving despite the decline in TVL data and decreased stake yield. Despite the recent increase in SOL’s price, investors should remain cautious, as deteriorating metrics may affect the network’s future performance.
Featured image from Selvan B – Unsplash, Chart: TradingView.com| Featured image from Selvan B – Unsplash, Chart: TradingView.com
Disclaimer: This analysis is based on the author’s own knowledge. It should not be considered investment advice.