In its latest report, Messari showcased Solana’s (SOL) performance during the Q1 of the year. The report highlighted a remarkable growth in its market capitalization, which surged by more than 100% compared to the previous quarter.
Analyzing Solana’s Q1 Performance
According to the report, Solana witnessed an upward momentum in its daily unique fee payers and transactions since the beginning of the last quarter. This resulted in a promising 68.7% increase in revenue in SOL for the network.
The BONK airdrop was one of the significant reasons for the fee payer and transaction activity during Q1. However, daily transactions showed some volatility in February, mainly due to the network outage that occurred during the same period. Additionally, the network moved towards a more decentralized state, with the average number of validators increasing by 18.9% QoQ.
Solana and the DeFi Space
Similar to revenue, Solana’s DeFi space also witnessed growth over the last quarter, as SOL’s TVL went up by more than 23% in the last three months. Interestingly, TVL denominated in SOL fell by 40.7%, indicating that new capital influxes were driving TVL more than asset price rises in USD. Moreover, liquidity-staking TVL saw growth of 100% QoQ.
NFT Space Growth
Messari’s report highlighted that the total number of daily new NFTs had increased from 2.6 million to 2.9 million. NFT sales denominated in SOL increased by 19.3% and reached an all-time high, even though a few top NFT collections on Solana migrated to other blockchains such as Polygon (MATIC) and Ethereum (ETH).
Solana in Q2 2023
The beginning of Q2 was not as good as Q1 for Solana, as evident from SOL’s price action. The token’s price registered an uptick on 10 April but later plummeted. According to CoinMarketCap, SOL’s price declined by over 15% in the last seven days and was trading at $21.23 with a market capitalization of more than $9.3 billion at press time. However, the network’s development activity remained high, and SOL’s demand in the derivatives market was stable, as per the reading of the Binance funding rate.
Moreover, Solana’s NFT sales volume increased by more than 120% last week, and its NFT trade volume in USD remained high, even though there was a decline in the total number of NFT trades count.
