- Crypto Pragmatist by M6 Labs
- Research Rundown: Unpacking the Solana Ecosystem
Research Rundown: Unpacking the Solana Ecosystem
Checkout some of the hottest airdrops in Solana
Welcome to the Monday research rundown!
Here’s what we’re going to cover today:
1️⃣ Investing in the Solana Ecosystem
Solana currently has some of the most interesting opportunities for you to ape in. With more than $1.8B locked in, here are some awesome points-boosting activities you can do.
Solana will soon launch the Saga Mobile 2, an Android smartphone that integrates blockchain technology into daily mobile use. This device aims to streamline the management and transaction of digital assets, such as cryptocurrencies and NFTs, by offering native support.
Want to find out more? Check it out here.
Marginfi is a decentralized protocol leveraging the Solana blockchain to offer traders portfolio margining capabilities.
MarginFi raised $3 million in a funding round led by Multicoin Capital and Pantera Capital. It currently has a TVL of $482.32M. Since January 24, 2024, the TVL in this app has jumped by 46.77%!
There is a lot of hype and attention around this protocol because of the points program for the MRGN token.
Connect your Solana wallet. Make sure the wallet has SOL or other Solana-related tokens.
Utilize the "lend" feature to lend out your tokens or borrow tokens from the platform, enhancing your trading strategies and capital efficiency.
Take advantage of the platform's additional functions, such as "stake," "swap," and "bridge," to earn points.
Parcl is a blockchain-based platform allowing fractional investment in US real estate by tracking neighborhood prices per square foot via the Parcl Data Feed. This lets investors speculate on real estate market movements without direct property investment.
The second season of Parcl's points program commenced on January 26 and focused on introducing structural enhancements to the Parcl V3 architecture and the dApp user interface.
The airdrop has attracted over 100,000 traders, accumulating over 2.6 billion points. Since this season is the briefest one of the trilogy, we recommend you jump in quickly.
The more you contribute as LP capital, the more points you earn. Investing more USDC into the LP pool will enhance your points accumulation rate.
The points earning rate has been boosted to 4 points per 1 USDC of LP capital every 24 hours and 2 points per 1 USDC of Open Interest every 24 hours.
Keeping a consistent level of open interest in the platform will ensure a steady earning of points, encouraging active participation in the market.
LPs now receive a larger portion of the generated fees, elevated to 80%. Furthermore, the fees for maker/taker transactions have increased from 1/6 to 2/10 basis points.
Register now and use the code “m6labs.”
2️⃣ State of the Market – Solana
Over this past year, Solana has successfully shed its “FTX” skin, and SOL has been on a rampage. Since February 2023, SOL has jumped from $24 to around $110. That’s a >400% jump in valuation.
What sets it apart?
Solana can handle a significant number of transactions per second thanks to its innovative Proof of History (PoH) consensus mechanism. This high bandwidth capacity and efficient validation process make it exceptionally well-suited for dApps demanding rapid transaction throughput. This capability sets Solana apart from many other blockchain platforms that struggle with slower transaction speeds, positioning it as a leading choice for applications requiring swift and efficient transaction processing.
DeFi ecosystem growth
Currently, Solana has close to 2 billion locked up in its ecosystem. Since the beginning of 2023, the TVL in Solana has jumped by ~9X from 210.47 million to $1.87, as of writing.
Here are the top 5 DeFi apps on Solana as per TVL. Marinade Finance is the only app with over a billion dollars locked in. MarginFi and Kamino are currently attracting a lot of TVL due to airdrop hype.
First, let’s look at the number of active accounts on Solana.
For a 12-month period between November 2022 and November 2023, the total number of active accounts on Solana has been most <500,000. However, over the past few months, the total number of active accounts has shot up. In several instances, the total number of accounts had exceeded a million.
Solana has processed around 250 million transactions per day in the last few months. Let’s look at the block production time.
Solana has mostly had an average block time of 0.5 seconds. There are certain spikes in block production that may seem out of place. These spikes in block production are correlated with network outages. As you can see, the latest spike happened on February 6, 2024, which correlates with the latest network outage.
Meanwhile, let’s look at the overall throughput.
Solana’s max TPS exceeded 5000 transactions per second, making it >300 times faster than Ethereum.
Solana recently released a validator health report. As per the report, Solana has the second-highest number of total validators, behind Ethereum.
Speaking of Validator clients, Solana Labs has 68.55%, while Jito has 31.45%. Firedancer and Sig are in development.
3️⃣ M6 Labs Research: Bitcoin Weekly
ETF inflows have been robust, and Bitcoin is showing strong upward movement. Could we be on the verge of reaching new ATHs?
Check more research here:
4️⃣ Good Tools – Flipside Crypto
Flipside Crypto is a business intelligence firm that provides free access to on-chain data for crypto and blockchain analysts. It offers a platform for learning, collaboration, and competition through bounty programs, supporting the crypto community's need for data-driven insights and decisions.
The future of crypto and blockchain technology is marked by significant growth. The industry is poised to attract a broader audience with the bull market around the horizon. As such, the best thing you can do is gain as much knowledge as possible about crypto.
Stay tuned for next week's Research Roundup.
Thanks for reading ❤️