Introduction: A Strong First Quarter for Solana
Solana has seen a remarkable recovery in Q1 2023, following a turbulent 2022. The platform’s market cap increased by over 118% QoQ, and a series of ecosystem developments have led to a surge in fee payer and transaction activity.
Solana’s Performance in Q1: A Look at the Numbers
Despite previous concerns regarding network outages, Solana’s performance has stabilized after implementing upgrades such as QUIC, priority fees, and Stake-Weighted Quality of Service. The layer one blockchain network experienced significant growth across DeFi, NFTs, and GameFi verticals in Q1.
DeFi Growth: Total Value Locked on the Rise
According to the latest Messari report, the total value locked (TVL) in Solana increased by 23.5% QoQ in USD terms. However, TVL denominated in SOL decreased by 40.7% during the same period. Liquid staking derivatives (LSDs) continued to support the Solana ecosystem, with Marinade Finance, Lido, Jito, and JPool growing their TVL by 100% or more in Q1.
NFT Surge: Sales Volume and Daily New NFTs Increase
Solana’s NFT ecosystem experienced a similar trend, with the total number of daily new NFTs increasing by nearly 12% QoQ. NFT sales volume in the secondary market rose by almost 36% in USD terms. The unique buyer count also exceeded the unique seller count during the first quarter, with 889,000 buyers and 887,000 sellers.
Solana’s Recovery from FTX Implosion
The strong ties between Solana and Sam Bankman-Fried’s crypto empire resulted in challenges for the network, leading to rumors of a developer exodus. However, the launch of new applications in 2023 has helped increase and stabilize the active programs in the Solana ecosystem. As a result, the number of unique active programs rose from 58,000 in Q1 2022 to 96,000 in Q1 2023.
With the significant growth experienced in Q1 across DeFi, NFTs, and GameFi verticals, Solana appears poised to continue its upward trajectory in the coming months.