Journalist
Published: September 27, 2023
- Solana protocols employed points programs and collaborations to drive DeFi participation.
- Despite TVL growth, DEX volumes fell; The partnership with Visa generated optimism.
solarium [SOL] It recently found it difficult to gain a firm foothold in the fiercely competitive DeFi sector. To address this, the network implemented several strategies to attract a broader user base, particularly within the DeFi realm.
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New incentives for users
One major strategy involved the adoption of points programs by several Solana DeFi protocols, such as MarginFi, Cypher, Solend, and the latest entrant, Jito.
These programs aimed to quantify and reward users’ contributions to the protocols, incentivizing users to actively participate in Solana’s DeFi offerings.
Source: Delphi Digital
More improvements needed
Another indicator of a possible positive future for Solana would be the improvement of TVL on the Solana network. According to Artemis data, Solana’s TVL increased from 296 million to 313.75 million in recent weeks.
However, despite a recent increase in total value locked (TVL) within the Solana ecosystem, there has been a notable decline in decentralized exchange (DEX) volumes.
These volumes play a critical role in the vitality of a DeFi network, and the decline in DEX activity raised concerns about the health and future prospects of Solana’s DeFi landscape.
Source: Artemis
Data from Token Terminal further underscored these challenges, revealing a 14.5% reduction in fees and revenue generated by the Solana protocol. This decline underscored the need for additional development and strategies to improve user engagement and adoption in the Solana DeFi space.
Stablecoin volumes increase
However, Solana’s collaboration with Visa injected a new wave of optimism into the ecosystem. This strategic partnership resulted in a considerable boost in USDC activity on Solana, leading to a substantial increase in daily transfer volumes.
In addition, it stimulated greater participation by large investors, often referred to as whales. This collaboration positioned Solana to strengthen its position in the DeFi sector, offering efficient payment solutions and attracting a broader user base.
Solana and Visa announced their blockchain alliance a few weeks ago
I have collected information on the chain effect, particularly USDC activity, in relation to the news.
🔥Even if the market is in a bear market, you can see the impact of the news.
-h4wk (@h4wk10) September 25, 2023
Realistic or not, here is the market capitalization of SOL in terms of BTC
Despite these commendable efforts and collaborations, Solana’s native token, SOL, faced a price drop over the past month. SOL was trading at $19,337 at the time of writing.
However, SOL’s increased trading volume indicated sustained interest and activity within the network.
Source: Sentiment
source: ambcrypto.com
Credit: Source link