Solana Achieves $1 Million in Inscriptions: What Opportunities Await SOL?

Exploring the Surge in Solana Inscriptions

In the last three days, Solana has experienced a remarkable surge in inscriptions, surpassing the total count of all inscriptions created prior to this period.

  • A staggering 287,000 inscriptions were minted on December 16th.
  • SOL derives value from transaction fees, with 50% of the revenue being burned.
  • The blockchain industry at large has witnessed a notable increase in inscriptions in the final stages of 2023.

Solana Inscriptions Cross One Million Mark

Solana (SOL), a prominent smart contracts blockchain, has not been immune to this surge. According to Flipside’s statistics analyzed by AMBCrypto, the cumulative inscription count reached 1 million on December 17th.

The activity peaked on the weekend, with an astonishing 287,000 inscriptions minted on December 16th alone. This surpasses the total number of inscriptions created before that time.

Furthermore, the number of creators exceeded 50,000 as of December 17th, with over 15,000 being new entrants to the market.

Similar to Bitcoin Ordinals, Solana’s inscriptions, utilizing the SPL-20 token standard, embed images or data directly on the chain. These inscriptions are pivotal in creating unique digital assets like non-fungible tokens (NFTs) and decentralized applications (dApps).

The inscription journey for Solana began on November 16th, with over 66,000 SLP-20s inscribed on the network over the next two days.

High Fee Revenue for Solana in December

Examining Token Terminal data, AMBCrypto observed a 77% increase in monthly fees on the Solana network. December proved to be particularly lucrative, with daily fees reaching a year-to-date peak of nearly $300,000 on December 14th. While it’s unclear if inscriptions were the primary drivers of the fee hike, the daily active user base also saw a significant monthly increase of 38.9%.

What’s Next for SOL?

It’s noteworthy that Solana burns 50% of its fee revenue, creating deflationary pressure on the native token SOL. As one of the top performers in the market, with a growth of 23.18% over the last 30 days according to CoinMarketCap, SOL holders are likely monitoring the inscription growth to make informed investment decisions based on network activity.