Solana
Is Solana becoming the preferred choice for Ethereum developers? SOL Uptrend Suggests Change — TradingView News
Since the collapse of trading companies like FTX in November 2022, the Solana blockchain has seen significant gains and regained investor confidence, with Ethereum developers increasingly migrating there.
According to a recent analysis by Jack Inabinet, Principal Analyst at Bankless, with significant growth in key metrics and a 770% year-to-date increase in SOL, Solana has solidified its position as a leading blockchain. Native teams in the Solana ecosystem have played a key role in its resurgence, but now non-native protocols are also seizing the opportunity.
Developers meet expectations
Solana’s return from a low of $8 in December 2022 to a yearly high of $210 in March is one of the most notable uptrends of this bull cycle. However, the ecosystem’s growth extends beyond its native token holders.
According to Inabinet, developers have lived up to the hype, starting with the PYTH airdrop, the native token of the Pyth network. This has incentivized users from different ecosystems to explore SOL by assigning tokens to addresses interacting with Pyth oracles across multiple networks.
Additionally, Jito Labs, Solana’s native liquid staking protocol, has made its airdrop, catalyzing “mass adoption” through points-based incentive systems.
While Solana’s native protocols have laid the foundation for widespread adoption of the platform, Ethereum developers are increasingly migrating to SOL. Inabinet highlights that, recognizing the significant on-chain activity within Solana, the projects are eager to capitalize on this opportunity.
Ethereum developers flock to Solana
For example, decentralized compute sharing network Render migrated its token to the Solana Program Library (SPL) standard, and MetaMask introduced Solana compatibility by introducing “Snaps.”
Additionally, according to Inabinet, Aave, Ethereum’s premier lending destination, has approved the deployment of a minimally viable version of its Isolated Money Market V3 via Neon Ethereum Virtual Machine (EVM), an Ethereum-compatible development environment built on Solana.
Proposals for independent deployments, such as the EVM-based perpetual trading platform GMX, further demonstrate the growing interest in SOL.
However, the analyst noted that Ethereum and Solana have different approaches to scaling, with Ethereum opting for network fragmentation and Solana favoring a unified state.
Given these approaches, Inabinet suggests that Solana’s alternative vision of blockchain offers attractive features, attracting developers seeking scalability and concentrated usage.
Still, the analyst cautions that developers must take a diversified approach to maximize success and secure market share. Inabinet concluded:
The crypto industry must overcome a huge chasm of uncertainty to move from infancy to an end state where true adoption is reached, and billions and billions of dollars of traditional assets make their way onto the chain . In the meantime, app developers succumbing to blind channel loyalty are leaving money and market share on the table.
At press time, SOL saw a 5% increase in the last 24 hours, resulting in a current trading price of $171, with the next hurdle being $176.
Featured image from Shutterstock, chart from TradingView.com