ByBit report claims Solana had strong network growth in Q2 on the back of GameFi, DAOs

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according to page 32 report good Released by ByBit, the second quarter of 2022 saw strong growth in the Solana ecosystem due to the strong performance of GameFi and DAO.

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DAO activity increased during the quarter, continued volatility in the NFT markets, strong interactions with GameFi, and a decline in DeFi market share.

Problem

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While some parts of the network may have seen solid growth, it was not without problems. During this two major networks came to a standstill. However, the upgrade to Solana appears to have a positive impact, as the report states,

“The network upgrade at the end of Q2 showed significant improvement in terms of transaction processing and reliability.”

In addition, the report highlighted issues with Soland, Slope Finance, Crema, Nirvana and Saga as examples of network security that needs to be significantly improved. Some incidents occurred early in Q3, but were included because of their potential impact on future Solana’s development.

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The price fell from a high of $146 during Q1 to a low of $26 in Q2 coupled with a massive sell-off in the market. However, $SOL is also down 46% against Bitcoin, indicating that the Solana capitulation was somewhat independent of the overall market.

Positive

However, with regard to on-chain activity, the bullish data supports the report’s belief that Solana is seeing network growth regardless of downward price pressure. As shown below, the number of daily active programs and validators continues to grow.

solana activity
Source: SolanaFM

The number of active users interacting with NFTs on Solana is also healthy compared to OpenC. The number of transactions on Magic Eden is also five times higher than OpenSea, although the transaction value is the same in both ecosystems.

solana nft
Source: SolanaFM
NFT Transactions
Source: DappRadar

There has been an increase in DAO activity, as the report argued that “Solana is catching up with Ethereum with the number of DAOs.”

“As an overview, DAO creation tools Realms has registered a significant growth of over 800+ DAOs of DAOs on Solana at the time of writing as compared to 100+ in January 2022.”

DAOs on Solana increased from 1,750 to nearly 2,500 from March to June 2022, “revealing a rich DAO landscape on Solana.” The report used data on the Solana multi-sig wallet to trace the increase in DAO activity.

falls down

Along with the decline in the token value of $SOL, the total value locked in Solana DeFi fell from $8 billion in Q1 to just $2.5 billion in Q2.

solana defy
Source: DeFiLlama

Furthermore, while NFT marketplace usage may be stagnant, some popular NFT projects, such as STEPN, have seen an exodus of users. The value of STEPN’s GST tokens fell 99.5% during 2022 amid a surge in players and limited use of in-game tokens.

steppen usage
Source: CoinGecko

It should be noted that within GameFi as a whole, Solana has seen an increase in market share compared to other series. The report attributes this to “Gameta’s strong user statistics, with Solana ranking as the top game series starting in Q2.”

gamefi
Source: Footprint Analytics

The report concluded that while concerns over Solana’s network instability still exist, Bybit is “optimistic that new upgrades are announced during the quarter.”
This will enhance the stability of the network and reduce the chances of future outages.”





Credit : cryptoslate.com

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