According to a 32-page report issued by ByBit, the Solana ecosystem noticed strong growth in the second quarter of 2022 as a result of the strong efficiency of GameFi and DAOs.

There was a rise in DAO exercise, continued volatility in NFT markets, strong interplay with GameFi, and a decline in DeFi market share throughout the quarter.

Problems

While there could have been strong growth inside elements of the network, it was not with out issues. There have been two main network outages throughout this time. However, upgrades to Solana look like having a optimistic impact, as the report said,

“Network upgrades in late Q2 have shown significant improvements in terms of transaction processing and reliability.”

Further, the report highlighted the points with Solend, Slope Finance, Crema, Nirvana, and Saga as examples of network safety that have to be drastically improved. Some occasions occurred at the begin of Q3 however have been included as a result of their potential impression on future Solana growth.

The worth of has declined from a excessive of $146 throughout Q1 to a low of $26 in Q2 alongside a broader market sell-off. However, $SOL has additionally fallen 46% in opposition to Bitcoin, indicating that the Solana capitulation was considerably unbiased of the general market.

Positives

However, in relation to on-chain exercise, bullish statistics assist the report’s perception that Solana is seeing network growth regardless of the downward worth stress. Daily lively packages and the quantity of validators are steadily growing, as proven under.

solana activity
Source: SolanaFM

The quantity of lively customers interacting with NFTs on Solana can also be wholesome in comparison with OpenSea. The quantity of transactions on Magic Eden can also be over 5 occasions larger than OpenSea, though the worth of the transactions is analogous throughout each ecosystems.

solana nft
Source: SolanaFM
nft transactions
Source: DappRadar

There has been a rise in DAO exercise, as the report argued that “Solana has been catching up with Ethereum with its number of DAOs.”

“As an overview, the DAO creation tool Realms has registered a significant rise of DAOs on Solana to over 800+ DAOs at the time of writing, compared to 100+ in January 2022. “

DAOs on Solana have grown from 1,750 to roughly 2,500 from March to June 2022, “revealing a prosperous DAO landscape on Solana.” The report used information on Solana multi-sig wallets to establish the enhance in DAO exercise.

Declines

Alongside the drop in the token worth of $SOL, the complete worth locked into Solana DeFi has fallen drastically from $8 billion in Q1 to simply $2.5 billion in Q2.

solana defi
Source: DeFiLlama

Further, whereas utilization of NFT marketplaces could also be regular, some common NFT initiatives, comparable to STEPN, have seen an exodus of customers. The worth of STEPN’s GST token has fallen 99.5% throughout 2022 amid a surge in gamers and restricted use of the in-game token.

stpen use
Source: CoinGecko

It ought to be famous that inside GameFi as an entire, Solana has seen a rise in market share in comparison with different chains. The report attributes this to “strong user statistics from Gameta, Solana ranks as a top game chain starting in Q2.”

gamefi
Source: Footprint Analytics

The report concluded by establishing that considerations over Solana’s network instability are nonetheless current, but Bybit is “optimistic that the new upgrades announced during the quarter
would enhance the network steadiness and reduce the possibility of outages in the future.”



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