SOL price reaches $41, what is happening with Solana?

Multiply 45X Your Bitcoins
Bitcoin Suisse Club Return 50X in 5 Hours Min 0.005 btc
77x bitcoin

Solana (SOL) has attracted significant attention in the cryptocurrency market, outperforming its peers with an impressive 79% uptrend in the last 30 days. As its price continues to rise, questions have been raised about the reaction of the Solana ecosystem to this increase.

On this topic, the Jarvis Labs team offered interesting insights into SOL’s current bullish trend and the condition of its ecosystem, addressing the factors influencing its growth.

Is the Solana ecosystem lagging behind?

Despite the SOL price increase, the total value locked (TVL) on Solana only doubled during this period, failing to match the four-fold increase in the price of the SOL token. This disparity raises concerns about the growth and development of the Solana ecosystem in 2023. A closer look at the ecosystem reveals a significant lag compared to SOL’s rapid price appreciation.

Several projects have attracted attention in the Solana ecosystem, showing their potential to drive growth. Jito, a net staking provider, offers Maximum Extractable Value (MEV) rewards along with staking income.

Marginfi, another noteworthy project, offers liquid staking tokens (LST) based on the Jito platform, as well as a lending service with an emphasis on risk management. Furthermore, decentralized exchanges like Phoenix and Jupiter have excelled in their respective niches.

Surprisingly, many successful projects within the Solana ecosystem have not yet launched their tokens. This absence of tokens, according to Jarvis Labs, contributed to the “delay in Solana’s TVL” despite the token’s price increase.

The hesitation to introduce tokens is due to past experiences where projects linked to the now-bankrupt cryptocurrency exchange FTX and its trading arm Alameda Research have suffered significant losses, leaving a feeling of caution among Solana developers. , according to Jarvis Labs analysis.

The Jarvis Labs team believes that while the tokens have the potential to be valuable assets, the warning from FTX-related projects highlights the importance of sustainable token design. Fair distribution, reasonable supply, and clear use cases are essential to creating tokens that add real value to the ecosystem.

Despite the challenges facing the Solana ecosystem, the emergence of new projects and the upcoming launch of tokens by some protocols offer hope for its future growth.

SOL price is approaching the $42 level, experiencing a notable 3.7% increase in 24 hours.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *