Solana, one of the most well-known layer one blockchain networks, has demonstrated substantial growth during Q1 of 2023, according to a recent report from Messari. Despite earlier challenges related to network performance degradation, Solana's fundamentals improved significantly during the first quarter. This article will delve into the key takeaways from Messari's report on Solana's Q1 performance.
Solana's Performance in Q1
The blockchain network saw remarkable growth across DeFi, NFTs, and GameFi verticals in Q1 2023. The total value locked (TVL) in Solana, denominated in USD, surged by 23.5% QoQ. However, TVL denominated in SOL decreased by 40.7% during the same period, indicating that the increase in asset prices in USD primarily drove TVL rather than new capital inflow.
Liquid Staking Derivatives (LSDs) Support Solana Ecosystem
LSDs, such as Marinade Finance, Lido, Jito, and JPool, played a crucial role in the growth of the Solana ecosystem. All four LSDs experienced a 100% or higher increase in their TVL during Q1, making it into the top 20 by TVL. Additionally, other prominent protocols like Orca, Raydium, and Solend grew their TVL massively alongside the broader market rebound.
NFT Ecosystem Flourishes on Solana
Messari's data revealed a nearly 12% QoQ surge in the total number of daily new NFTs on Solana, increasing from 2.6 million to 2.9 million. NFT sales volume in the secondary market, denominated in USD, rose by almost 36%. Sales denominated in SOL increased by 20% before skyrocketing, indicating that sales activity was not solely driven by asset price increases in USD. Furthermore, the number of unique buyers surpassed unique sellers during Q1, with 889,000 buyers and 887,000 sellers.
Despite facing challenges related to network performance degradation, Solana's Q1 report by Messari shows a promising future for the blockchain network. With significant growth across various verticals, including DeFi, NFTs, and GameFi, Solana is well-positioned to continue its upward trajectory. As Solana's ecosystem expands and matures, the platform is poised to become an increasingly influential player in the blockchain and cryptocurrency space.