- The Solana ecosystem showed positive growth with the adoption of rates in the local market
- Developer activity continued to rise at Solana while TVL declined
According to a tweet from Messiri on December 17, despite the general FUD plaguing the crypto market, from Solana [SOL] ecosystem showed signs of growth.
.@solariumThe introduction of "Local Rate Markets" allows users to submit priority rates to validators to prioritize their transactions.
The result is less spam and more efficient use of blockspace. pic.twitter.com/DAsYKAUWCg
โMessari (@MessariCrypto) December 17, 2022
Read from Solana [SOL] price prediction 2023-24
One of the reasons for Solana's growing ecosystem could be the adoption of the local network rate market. The introduction of the local fee market allowed users to submit priority fees to validators to prioritize their transactions. This resulted in reduced spam, and nodes could use Solarium's best space block.
Developers remain interested in Solana
In welcome news, developers took an interest in Solana despite volatile market conditions. According to data provided by token Terminal, the number of active developers on the network continued to rise despite falling prices. Therefore, there was an increase in the number of contributions made to Solana's GitHub.
Price of $ SUN ๐, but the main activity of the developer in @solarium ๐ pic.twitter.com/u1Gspi14LS
โ Token Terminal (@tokenterminal) December 17, 2022
The growing number of developers and further development activity could help ease the transition from TIPINs (Token Incentivized Physical Infrastructure Networks) to the Solana network. TIPINs primarily use token rewards to incentivize people to engage in real-world activities.
The emergence of TIPINs would then be a key factor in Solana's growing ecosystem. TIPIN like him Helium the net, beehive folders, Y teleport it could attract more users to the Solana ecosystem.
The NFT angle
The NFT market was one of the few sectors where Solana experienced consistent positive growth. The growing interest in SolariumNFTs could greatly contribute to the Solana ecosystem in the future.
Since Solana floorData of, the Solana Blue Chip Index was noted to have moved in a positive direction over the past 30 days. Along with that, the total minimum value of Solana's NFTs also increased. Solana's total minimum value had gone from $154 million to $253 million in the past month.
Source: Soil Solana
However, despite the improvements seen in Solana's ecosystem, its TVL has taken a huge hit over the past month.
According to information compiled from DefiLlama, Solana's TVL fell from $1 billion on November 1 to $256 million as of this writing.
Subsequently, the commissions generated by Solana also decreased. According to Token Terminal, revenue collected from Solana dropped dramatically after November 7. Revenue generated has dropped 50% since then, from $52,484 to $26,580 in 40 days.
Source: Token Terminal
Whether the Solana ecosystem can overcome its current hurdles remains to be seen.
