Glance At Solana’s Performance In Q3 This Year

• Increase in network activity at SOL (Solana).
• The expansion in the blockchain network’s NFT sector. 
• DeFi in Solana continues to thrive. 

According to CoinGecko, there is a massive 16.4% increase and at the time of writing SOL is $32.84. Despite a bear market from the month of May, it has shown fair results in its journey. 

Crypto research tool Messari tells about the true position of the Solana network which represents L1’s inside operations. In spite of the gloomy crypto market, the data shows that Solana has performed appreciably in the third quarter. 

SOL Soaring Network Activity

As depicted by Research analyst James Trautman at Messari, network activity has grown at Solana. It is seen that quarter on quarter(QoQ) network activity has soared by close to 70% from 20.544 million in the second quarter(Q2). 

Solana is an open-source public blockchain network which without sacrificing its decentralization and security provides scalability and promotes smart contracts. It works on Proof-of-History (PoH) mechanism.  

Also,the number of transactions processed per second (TPS) has increased by 40% from 2,310 TPS in Q2 to 3,200 in Q3. Main cause of this is an improved network due to which transaction activity is balanced and increased. 

As per the reports, transaction fees have been consistently falling since late 2021. The 40% decline in transaction fees is seen drowning from $0.0005 to $0.0003, which made Solana more favorable to devs who prefer to build dApps on Layer 1 blockchain with an efficient performance. 

Lowered network performance as experienced in 2021 and also in Q1 and Q2 of the ongoing year has decreased network transaction activity and its revenue simultaneously.As a result of reduction in the network’s transaction fees, its revenue tends to fall approximately by 25%. But Solana may bounce back in the upcoming quarters(Q4).

Next Move For Stability 

On 23 June, Solana Labs’s CEO, Anatoly Yakovenko, announced the launch of a software development kit for Web3 programs called “Solana Mobile Stack (SMS)” in the first quarter of next year. SOL is among the first major crypto companies that is introducing its crypto phone: The “Saga”. This will also attract new users. 

On 27 October, Solana retweeted on Messari – “Solana has continued implementing solutions to expand its ecosystem and improve network reliability. Into Q4 and beyond, the team will continue to implement strategies to expand its ecosystem”.

The total number of daily new NFTs soared to over 8 million in the SOL network, constituting about overall 19.3% of growth each quarter. But on the other side, it has seen a reduction in both NFT buyers and sellers. Whereas DeFi in Solana continues to grow but also decelerated and stabilized.  

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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