• Solana observed massive volatility in the last quarter, with stakers losing interest and SOL’s price showing signs of recovery.
• Despite challenges such as the SEC complaint and delisting from exchanges, Solana managed to remain the 10th largest crypto asset in terms of market capitalization.
• Activity and fees on the network declined, due to a decrease in users opting for priority fees. Staking also saw a sharp decline over the past 30 days.
Solana experienced a tumultuous Q2, facing multiple challenges such as lawsuits filed by the Securities and Exchange Commission (SEC) which led to its delisting from exchanges like Robinhood. Despite this, it remained the 10th largest crypto asset in terms of market capitalization amounting to $7.2 billion according to Messari’s data. Activity and fees on the network declined significantly due to a decrease in users opting for priority fees, while staking also saw a sharp decline over the past 30 days.
In Q1 2023, revenue saw support from higher priority fees paid by users but SOL’s revenue experienced a 15% decrease in Q2 compared to the previous quarter due to a decline in proportion of daily fees paid. The implementation of priority fees played an important role in preventing downtimes but their usage decreased causing transaction fee average to drop and affecting Solana’s revenue.
Despite these events corresponded with downward impact on value of SOL, its prices showed signs of recovery at end of quarter with Solana standing as 10th largest crypto asset in terms of market capitalization amounting $7.2 billion according to Messari’s data.
Priority Fees Usage
The implementation of priority fees played an important role in mitigating past downtime issues resulting from inefficient processing & discouraging spamming activities. During Q2 an average 40% daily fee was paid by users who opted for priority fee which marked decline from 50% observed previously thus leading drop network’s average transaction fee & subsequently affected Solana’s revenue .
Stakers began losing interest & number fell 21% lower than previous mark during last 30 days according Staking Rewards’ data . Despite these challenges , Solana managed gathering some momentum although growth trajectory was impeded by SEC complaint and associated delisting .
Despite stakers losing interest , SOL’s price showed signs recovery at end of quarter . Although further developments are needed for improvement , given current situation it is expected that Solana will be able observe improved figures during upcoming quarters .