The main dishes to remember:
The native token of Solana, soil (soil), fell 10% following a net rejection at $ 185 on May 23. The current bar of $ 167 is the lowest in more than a week, which led merchants to question the reasons for the recent decline and if Sol could review the level of support of $ 142.
Despite the drop in prices, soil holders can comfort themselves in Solana’s position as a second network in terms of total locked value (TVL). However, the domination of Ethereum remains undisputed, supported by a large ecosystem of Layer-2 which offers low costs and a high election.
The current 11 billion dollars of Solana on TVL mark an increase of 14% compared to the previous month, although Ethereum has displayed even stronger growth. Notable developments in Solana include 48% growth in Raydium deposits and a 28% increase in marinade TVL. However, growth was more modest in other decentralized applications (DAPP) such as Jupiter, Kamino and Drift.
The volumes and the solana costs exceed Ethereum
The bulls remain convinced that Solana’s position is secure, thanks to its effective integration of web 3 applications with mobile wallets. Over the past 30 days, the volume of negotiation on the decentralized Solana (DEX) grants has reached $ 94.8 billion, exceeding $ 64.8 billion in Ontchain Ethereum, according to Defilma data.
SOL Bears highlights the growing Dex activity on the Ethereum layer 2 ecosystem, which has reached $ 59.2 billion in the last 30 days. Although this trend is undeniably significant, it has not resulted in higher costs. Ethereum allows Rollups to consolidate the data in blobs, by reducing costs, while Solana captures more value of ONCHAIN’s activity.
This contrast is obvious in the costs on the costs: more than 30 days, Solana generated $ 48.7 million in fees, compared to the $ 36.9 million in Ethereum, although Ethereum has a much greater deposit base. Meanwhile, the BNB chain, despite a recent increase, is late with only $ 15.1 million in fees, which facilitates the fact that projects artificially inflate volume figures.
Another factor weighing on the feeling of investors is the expected unlocking of 3.55 million soil between June and August, worth around $ 600 million at current prices. Analysts note that most of these tokens have been acquired in the FTX / Alameda bankruptcy field to around $ 64, which potentially limits the advantage of the token.
Although Solana offers an 8% yield for validators, well above Ether 3%, its offer develops at an annualized rate of 5.2%, according to Stakrewards. Consequently, the net yield of the net floor shuttle is lower than the yields offered by many DAPPs on stablecoin deposits.
Soil suffers from mev and the decline of interest in the same
The high flow of Solana Network is delivered with compromises, in particular with regard to validator incentives linked to the MEV (maximum extractable value). Validators can increase their profits by reorganizing transactions, which opens the door to sandwich attacks and leading practices which harm regular merchants. According to Dan Robinson, a researcher at Paradigm, Mev is Solana’s “biggest problem”.
Merchants also question the long -term viability of the same, based in Solana after several have displayed strong weekly decreases. The Trump Manager (Trump) fell 24%, while Fartcoin and Popcat lost 20%, and the fatty penguins (Pengu) have dropped 17%in the last seven days. A sustained drop in Dex activity would put pressure on soil performance.
Despite these risks, the high performance of Solana in the commercial volume and the total deposits suggest that there is no immediate sign of underperformance compared to the larger Altcoin market. However, unlocking tokens planned in the coming months considerably reduce the chances of recovering $ 200.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
