Gauging Solana’s [SOL] next move as the network’s earnings spiral downwards

  • 📰 CryptoAmb
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 68%

Business News News

Business Business Latest News,Business Business Headlines

Solana network witnesses high activity on the protocol. Potential token drops of dApps can propel Solan's growth further.

Many popular dApps on the network, such as Magic Eden, Jupiter and Wormhole currently do not have native tokens. If they were to launch their tokens in the future, it would drive high activity on Solana, resulting in higher amounts of fees accrued by the network.

According to Messari, athough these dApps haven’t explicitly announced plans to launch tokens, recent moves from competitors and newly launched rewards programs suggest that such launches are likely, as is common for successful app protocols. By comparing benchmark valuation indicators, it is estimated that the potential market cap for crypto apps is high. They projected a $1 billion – $2.5 billion growth for top token less projects on Solana.

The launch of tokens will also impact Solana’s market cap. It was found that fee payers grow at twice the rate of market cap, estimating 210K-290K new users following the new project launch.However, at press time, the earnings generated by the network took a hit. According to data provided by token terminal, the overall earnings of Solana declined by 17.9% in the last 30 days.This decline in earnings did not stop developments from occurring on the Solana network.

This spike in development activity indicated that new upgrades and updates are on their way on the Solana network. These updates could attract new users on the network and help generate more revenue and compete with other larger protocols in the cryptocurrency space.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 22. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Great-West Lifeco sees net earnings drop, base earnings rise in first quarterGreat-West Lifeco attributed the decline in net earnings in part to losses in non-fixed income assets and effects from changing interest rates
Source: globeandmail - 🏆 5. / 92 Read more »

20 U.S. IT stocks that offer safety and valueWe are looking for IT firms with dividends, good balance sheets, consistent earnings and value
Source: globeandmail - 🏆 5. / 92 Read more »