- What is Solana?
- Solana On-chain Data Analysis and SOL Price Performance
- Solana Ecosystem Updates
- Are Solana ETFs on the Horizon?
- Solana Meme Coins
- Solana DEXs
- Solana NFTs and Gaming Updates
- Looking Ahead – Will Solana Rise in a Competitive Market?
What is Solana?
Solana
Solana On-Chain Data Analysis and SOL Price Performance
In June 2024, the price of Solana’s native token, SOL, experienced a downward correction. The chart shows some significant fluctuations throughout the month, with a high of $175 on June 5 and a low of $124 on June 24.
SOL’s price drop in June wasn’t just a reflection of the overall crypto market downturn. Internal problems with the network, particularly concerning maximum extractable value (MEV), added fuel to the fire. Some validators on the Solana network were caught exploiting traders through “sandwich attacks.” These attacks involve manipulating transaction prices to profit at the expense of everyday investors unfairly. This incident, coupled with an outperforming Layer 1 blockchain rival, Ethereum, and stagnant inflows into the Solana ecosystem, likely contributed to the decline in SOL’s price.
At the end of June, SOL closed at $144. This bullish trend was fueled by the filing of the first spot Solana exchange-traded fund (ETF) applications in the United States by VanEck on June 27 and 21Shares on June 28, which sparked a wave of investor excitement. SOL’s price jumped 10% in one day following VanEck’s filing, continuing an upward trend that began in late May. Analysts believed that spot Solana ETFs, similar to the recently approved spot bitcoin ETFs, could significantly benefit the price of SOL.
On-chain data from the Solana network shows an increased daily transaction volume, a trend also seen in May. The network processed 32.7 million transactions on June 1, and that number rose steadily throughout the month, reaching a whopping 43.8 million by June 30. This represents a nearly 34% increase in daily transactions over the course of June, suggesting growing user adoption and network activity.
Data from The Block also shows that the monthly average of non-vote transactions – including transfers, smart contract executions, and DEX trades – on Solana reached a staggering 915,15 million in June, the highest level in two years.
While overall network activity on Solana increased in June, the number of new addresses joining the network showed signs of slowing. Compared to May’s figure of 26.65 million new addresses, June saw a slight decrease, settling at 25.4 million. In terms of daily active users, Solana saw a spike on June 4 and June 26, reaching 2 million each day. By the end of the month, however, that number had dropped to 1.6 million on June 30.
The total value locked (TVL) within the Solana ecosystem witnessed a steady decline throughout June. Starting at $4.8 billion on May 1, the TVL dropped to $3.4 billion by June 30. This represents a significant decrease of roughly 29% in locked funds over the course of the month. However, despite this monthly decline, Solana’s TVL has still grown significantly year-over-year. On January 1, 2024, the TVL was only $1.4 billion. Overall, Solana’s TVL has increased 140% in six months.
Solana TVL in 2024. Source: DefiLlama
This TVL is a positive indicator for the Solana network. It suggests that more users and developers are actively using the platform, locking up their crypto assets in DeFi applications and other services. This increased engagement reflects a growing demand for Solana and its projects.
Furthermore, a high TVL can boost investor confidence. It showcases the network’s robustness and growing adoption, which can generate positive sentiment and attract further investment. This increased buying pressure could translate into a higher price for SOL.
Despite ranking fourth in TVL, Solana has emerged as a major player in the DeFi space. This is evident in its impressive second place for decentralized exchange (DEX) volume by chain. This suggests that even though users might not be locking up as many assets in Solana DeFi protocols compared to some competitors, they are actively using Solana’s DEXs for trading, highlighting the network’s growing appeal and potential.
Solana Ecosystem Updates
For the Solana ecosystem, June was marked by a focus on security, the introduction of new features, and continued expansion.
Security Takes Center Stage
The Solana Foundation took a proactive step against malicious activity by removing certain operators from its delegation program. These operators were identified as engaging in “sandwich attacks,” a predatory tactic that exploits transaction fees. This move demonstrates the Foundation’s commitment to a secure and trustworthy network.
I’m sure a lot of super honest people who have a perfect understanding of MEV on Solana and the Foundation Delegation program will try to misrepresent reality to feel better about their bags
For those genuinely curious, I’ll summarize:
– a sandwich attack is a malicious form of… pic.twitter.com/KhfGBgGuyT
— mert | helius | hSOL (@0xMert_) June 10, 2024
Transforming the User Experience
Moreover, on June 25, the Solana Foundation launched tools called Solana Actions and blockchain links or “blinks” that allow any website, app, social media platform, and QR codes to become launch points for crypto transactions on the Solana blockchain.
Users can now seamlessly buy, sell, or trade crypto directly within the applications they already use. The tools are similar to Frames on Farcaster but are designed to work on any website, including X.
Colosseum Raises $60M
The Solana accelerator program, Colosseum, closed its first fund at $60 million. This substantial investment will fuel the growth of promising Solana-based startups and accelerate innovation within the ecosystem.
Loyalty Programs Go Digital
On June 12, Solana Labs, the company behind the Layer-1 blockchain Solana, introduced its new project Bond, a customer loyalty platform. This platform leverages blockchain technology to create secure and transparent loyalty programs for businesses and a more rewarding experience for consumers.
1/ Today, Solana Labs proudly announces the launch of Bond, an innovative platform for global brands to elevate customer engagement. Bond uses blockchain to create personalized, transparent, and engaging digital experiences, deepening customer connections and driving loyalty 🧵👇 pic.twitter.com/WZHU3aDiD9
— Solana Labs (@solanalabs) June 12, 2024
Circle and Solana Partner on Payments
On June 12, Circle announced a collaboration with Solana to integrate programmable wallets into their payment solutions. The integration will occur in two phases. The first phase will focus on programmable wallets, enabling developers to automatically manage assets based on predefined rules, and sponsored transaction fees through its gas station feature.
The second phase will introduce support for NFTs and program interactions via the Smart Contract Platform. This move will align Solana with other blockchains already supported by Circle’s Web3 services, including Ethereum, Polygon, and Avalanche.
Are Solana ETFs on the Horizon?
The prospect of a spot Solana ETF has become a hot topic in the cryptocurrency world. With several investment firms filing applications with regulators, the possibility of a regulated Solana product entering the U.S. market seems closer than ever.
On June 27 and 28, two major players, VanEck and 21Shares, filed S-1 registration statements with the U.S. Securities and Exchange Commission (SEC) for a spot Solana ETF. The firms believe Solana’s native token should be treated as a commodity.
We have another spot sol ETF filing…
This one from 21Shares.
Here we go again. pic.twitter.com/ujumjpdKbM
— Nate Geraci (@NateGeraci) June 28, 2024
VanEck’s head of digital assets research, Matt Sigel, underscored the strong demand for Solana-based investment products, driven by its rapid technological advancements, decentralized nature and robust ecosystem.
However, Bloomberg ETF analyst Eric Balchunas said that the approval of a spot Solana ETF in the U.S. may only be possible with a change in the administration and the head of the SEC. Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, argues that it would have been more prudent to clarify SOL’s alleged security status before VanEck filed for a spot Solana ETF.
Should Solana get an ETF at some point? Absolutely.
But this is also reckless by VanEck, when futures volume, unsettled SEC claims, etc are outstanding with Solana.
Really hope this isn’t giving Gensler an easy setup. https://t.co/93TkQLAl66
— Adam Cochran (adamscochran.eth) (@adamscochran) June 27, 2024
The applications by VanEck and 21Shares follow the recent filing by cryptocurrency asset manager 3iQ for a spot Solana ETF in Canada, marking a first for North America.
According to Bloomberg ETF analyst James Seyffart, over $1 billion worth of Solana exchange-traded products (ETP) are already available worldwide, including the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe, based on data from June 20.
You guys would be stunned to realize we already have over $1 Billion in Solana ETPs elsewhere in the world!! pic.twitter.com/y3zSZrHJGo
— James Seyffart (@JSeyff) June 20, 2024
The recent wave of filings for Solana ETFs shows that major institutions are increasingly interested in Solana-based products. This growing interest likely stems from Solana’s technological strengths and its growing presence in the market. As a result, Solana seems to be gaining wider acceptance from established financial players.
Solana Meme Coins
In June, while some meme coins experienced a rollercoaster ride with a positive ending, others faced a downward trend.
The price of Dogwifhat (WIF) showed an upward trend throughout June. Starting at $3.38 on June 1, WIF dropped significantly to $1.54 on June 24. By the end of the month, Dogwifhat had risen over 27% since 21Shares filed its S-1 with the SEC on June 28, reaching $2.11…
This article was originally published by a cryptonews.com . Read the Original article here. .
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. BitcoinNews.best does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.