Unlocking SOL’s Potential: Analyzing Surging Metrics to Propel Solana’s Rally

Solana’s DeFi Growth

Solana’s decentralized finance (DeFi) ecosystem has experienced a surge of activity in the past two months, with its total value locked (TVL) reaching its highest point since the year began, according to data from DeFiLlama.

At press time, Solana’s TVL was $1.30 billion. The last time the network’s TVL was this high was in October 2022.

For context, as of 1st January, the network’s TVL was a mere $210 million, showing that Solana’s TVL has witnessed a year-to-date (YTD) growth of 519%.

Over the past month alone, Solana’s DeFi vertical has witnessed an impressive 130% growth. This is in tandem with the network-wide growth that the Layer 1 (L1) blockchain network has seen within that period.

  • Marinade Finance TVL growth: 87%
  • Jito TVL growth: 55%
  • Marginfi TVL growth: 165%

Solana’s December Highlights

The month so far has seen a remarkable uptick in the demand for the network. An assessment of the chain’s network activity revealed that its daily count of active addresses climbed to a YTD high of 1.26 million on 17th December.

While this has seen a slight retracement, Solana’s daily active address count has increased by 157% since the beginning of the month.

When a network’s user count increases, it sees a corresponding transaction increment. On Solana, the total number of transactions registered on-chain daily has gone up by 23% since 1st December.

As for the decentralized exchanges (DEXes) on Solana, the trade volume executed through them touched a YTD high of 2.61 billion on 22nd December, according to data from Artemis.

This marked a whopping 17,000% increase in DEX trading volume on Solana so far this year.

As a result of the increased activity on Solana in the last 30 days, monthly fees generated from users currently sit at its highest since the year began.

According to data from Token Terminal, so far this month, Solana’s transaction fees have totaled $3.7 million. The monthly revenue derived from the same has also been at its highest since January. With a week left till the close of the 2023 trading year, the network has seen a monthly revenue of $1.9 million.