🔎Is Solana DeFi Summer happening?
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☀️Solana DeFi Summer
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☀️ Solana DeFi Summer
DeFi summer is a term used to describe the period from 2020 when the prices of almost every coin skyrocketed, marked by a surge in innovation and adoption.
That’s what also seems to have started happening on Solana over the past months, which has seen massive growth across all metrics.
And this week, Solana’s most anticipated airdrop finally happened.
Jupiter, the largest Solana DEX aggregator, released its token $JUP and airdropped >$700M to its users, which is the biggest airdrop of 2024 so far.
Here are a few interesting charts that show the current adoption levels of Solana:
Phantom just flipped Coinbase in app store downloads
Phantom is the most popular crypto wallet for Solana.
And last week, it surpassed Coinbase in app store downloads for the first time ever.
This is not bullish only for Solana but for the entire crypto space. More and more users are starting to experiment with on-chain apps instead of just buying coins on centralized exchanges.
Solana is now regularly processing as much trading volume as Ethereum
The total DEX trading volume is one of the most important metrics that I’m looking at when researching a blockchain as it’s typically very hard to fake the trading volume due to the swap fees that have to be paid for each swap.
Solana is now regularly surpassing Ethereum L1 in trading volume, which is certainly a great sign for the network.
Unibot’s trading volume is currently 4x bigger on Solana than on Ethereum
Unibot is one of the most popular telegram trading bot projects.
Until recently, Unibot was accessible only to Ethereum L1 users.
But last month it also went live on Solana, and the chart above demonstrates that its multichain expansion was a huge success.
It also shows that there’s a big appetite for quality DeFi applications on Solana, and this might lead to an increase in the no. of protocols that choose to expand to it.
All these things lead me to believe that Solana has a bright future ahead.
It’s worth mentioning though that Jupiter's airdrop was one of Solana’s most anticipated catalysts.
Now that the airdrop finally happened, this might end up being a sell-the-news event in the short term.
But I’m a long-term believer in the project.
So I’m not very interested in trading the short-term price volatility.
Regardless of what happens over the next few days, Solana has 2 more major catalysts in 2024:
Firedancer launch - Firedancer is a major upcoming network upgrade that enabled Solana to process 1M+ TPS on testnet
even more airdrops - Drift, Parcl, MarginFi, Tensor, and Kamino airdrops are all expected to be announced in the next few months
Massive airdrops are generally a great thing for an ecosystem as they inject a lot of new liquidity into it.
And as I said several times in the past, the fact that Solana managed to survive the FTX collapse and thrive post-FTX makes me very optimistic about its future.
I covered my bull thesis for Solana in a newsletter issue a few months ago:
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The monthly trading volume of on-chain prediction markets is skyrocketing
For the first time ever, Polymarket, the largest on-chain prediction market, surpassed $50M in monthly trading volume.
The exact reason behind this surge is not known.
But one of the reasons might be that the US presidential elections will take place in 2024 and there seems to be a lot of interest in political prediction markets.
The latest developments in DeFi
Ava Labs unveiled Vryx Scaling Solution, aiming for 100,000 transactions per second on the Avalanche blockchain
Jupiter launched its token and airdropped >$700M to its users. A large % of its token supply is reserved for future airdrops
Picasso released the first instance of restaking on Solana. SOL and SOL liquid staking tokens can now be deposited in its restaking vaults
LayerZero has launched LayerZero V2. The new iteration enables devs to build apps and tokens that work the same way across every blockchain among other things
Router Protocol launched Router Nitro, a modular cross-chain bridge. Router Nitro slashes cross-chain transaction costs by 60%
Mode Network Mainnet & Airdrop 1 went live. Mode is a new Modular DeFi L2 powered by Optimism
Aevo announced Aevo’s first farming program and an airdrop. By participating in its farming program, users can increase their airdrop rewards
Immutable zkEVM Mainnet Early Access went live. Immutable is one of the most popular GameFi projects, and its zkEVM is powered by Polygon
Starknet announces a partnership with Celestia to enable the creation of high-throughput L3s
Skip Protocol introduced Slinky, the first restaked oracle aggregator. Slinky is built for DeFi apps that need maximal performance & minimal trust
Polygon introduced AggLayer, a solution that aims to significantly improve the cross-chain UX and solve the liquidity fragmentation problem
That’s all for this week!
Until next time,
The DeFi Investor
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