SOL Price Reaches $41, But What’s Happening In Solana Ecosystem?
November 07 2023 - 4:00PM
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Solana (SOL) has garnered significant attention in the
cryptocurrency market, surpassing its peers with an impressive 79%
upward trend over the past 30 days. As its price continues to soar,
inquiries have arisen regarding the reaction of the Solana
ecosystem to this surge. About this subject, the Jarvis Labs team
has offered intriguing insights into the ongoing SOL bull run and
the condition of its ecosystem, addressing the factors influencing
its growth. Is The Solana Ecosystem Lagging Behind? Despite SOL’s
price surge, the Total Value Locked (TVL) on Solana has only
doubled during this period, failing to match the fourfold increase
in SOL’s token price. This disparity raises concerns about the
growth and development of Solana’s ecosystem in 2023. A closer
examination of the ecosystem reveals a significant lag compared to
the rapid appreciation of SOL’s price. The Jarvis Labs team
highlights that a new wave of projects injects liquidity into
Solana’s ecosystem, offering hope for its growth. Notably, these
projects have been launched within the past year, leading to a
diverse ecosystem rather than a concentration of similar
offerings. Related Reading: Ethereum Bullish Revival: Will
This Breakthrough Lead To A New Market Phase? Among the top gainers
in TVL, seven projects emerged recently, contributing to Solana’s
expanding landscape. Several projects have caught attention within
Solana’s ecosystem, showcasing their potential to drive growth.
Jito, a liquid staking provider, offers maximum extractable value
(MEV) rewards alongside staking yields. Marginfi, another
noteworthy project, offers liquid staking tokens (LST) based on
Jito’s platform, as well as a lending service emphasizing risk
management. Additionally, decentralized exchanges like Phoenix and
Jupiter have excelled in their respective niches. Surprisingly,
many successful projects within Solana’s ecosystem have yet to
launch their tokens. This absence of tokens, according to Jarvis
Labs, has contributed to “the lag in Solana’s TVL” despite the
soaring token price. Sustainable Token Design The hesitance
to introduce tokens stems from past experiences, where projects
tied to now bankrupt crypto exchange FTX and its trading arm
Alameda Research suffered significant losses, leaving a cautious
sentiment among Solana developers, according to Jarvis Labs’s
analysis. Related Reading: Bitcoin May Be Headed Towards 20%+
Decline Based On This Pattern The Jarvis Labs team believes that
while tokens have the potential to be valuable assets, the
cautionary tale of 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 Solana’s ecosystem
faces, the emergence of new projects and the forthcoming launch of
tokens by some protocols offer hope for its future growth.
Ultimately, Jarvis Labs suggests that by embracing sustainable
token designs and maintaining a focus on ecosystem development,
Solana can unlock the full potential of its “thriving network.” The
Jarvis Labs’ analysis concluded: So, to all the Solana
protocols out there: let’s make tokens great again. Let’s create
tokens that are more than just a quick cash grab, tokens that
contribute to the growth and sustainability of the ecosystem. SOL’s
price is approaching the $42 level, experiencing a notable surge of
3.7% within 24 hours. Featured image from Shutterstock, chart from
TradingView.com
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