• Solana (SOL) network has seen 26.5% growth in total value locked (TVL) since the start of 2023, crossing the $259 million mark.
• The diverse ecosystem of Solana, including DeFi and NFT offerings, is a significant driver of this growth.
• Institutional investors are shifting focus to altcoins, including SOL.
Solana Sees Rapid TVL Growth
Solana’s Total Value Locked (TVL) has grown by 26.5% since the start of 2023 and crossed the $259 million mark. This impressive growth is attributed to Solana’s diverse ecosystem which includes DeFi and NFT offerings such as Claynosaurz, Pixel Boy and Moo Doo. It is competing with Ethereum in the smart contract hub market and has positioned itself as one of the most adaptable layer-1 protocols. Additionally, it plans to launch its own crypto phone Saga in Q1 2023, furthering its goal to be a leader among layer-1 blockchains.
Comparing TVL Growth Among Blockchains
CryptoCompare’s latest asset report reveals that Kava saw 36.5% growth in March compared to Solana’s 16.5% growth rate and Tron’s 11.4%. Binance Chain witnessed 6.15% growth over the same period while Fantom and Avalanche experienced almost negligible 0.53% and 0.91% rise respectively in their TVLs indicating positive signs for Solana’s ecosystem when compared to other blockchains with exception of Kava’s higher growth rate over this period..
Despite its various successes, Solana team has faced concerns regarding network reliability including an 18-hour outage in February 2023 resulting from node syncing issues during patch updates . To ensure network stability, one-third of core engineers will focus on enhancing the network throughout 2023 supported by a six-point strategy to refine update process for patches/fixes across nodes on its decentralized network platform .
Institutional Investors Shift Focus To Altcoins Including SOL
Institutional investors are withdrawing funds from cryptocurrency investment products offering exposure to dominant digital assets like bitcoin (BTC) and ethereum (ETH). Instead they are wagering on products that expose them more altcoins such as XRP, solana (SOL), litecoin (LTC),and polygon(MATIC). Despite BTC’s price hike institutional investors ditched BTC related products causing an outflow of $113 million this past week whereas XRP products had $400000 inflows indicating preference towards investing into diversified portfolio comprising multiple cryptocurrencies rather than just focusing upon BTC alone .
Solana’s rapid TVL growth is being driven by a diverse set of offerings ranging from DeFi solutions , NFT platforms , crypto phones along with increasing interest from institutional investors who are now investing into diversified portfolio comprising multiple cryptocurrencies rather than just focusing upon BTC alone . Although there have been challenges like node syncing issues resulting in outages , the future looks bright for SOL given increased investments into improving its infrastructure and stability .