The year has presented a lot of ups and downs for blockchain networks. Solana, one of the most promising proof-of-stake networks in the industry, has not been spared by the harsh market conditions.
After hitting a bump in the second quarter of the year, following a major pushback from regulatory bodies, Solana is attempting to strengthen its position as one of the major pioneers of DeFi in the industry.
According to key insights shared by Messari Crypto, a leading crypto intelligence firm, the Solana network saw its financial performance suffer from regulatory pushback.
Notably, the U.S. The Securities and Exchange Commission blacklisted several digital currencies, including Solana (SOL). The U.S. SEC alleged that a handful of cryptocurrency exchanges have unlawfully engaged in unregistered offers and sales of crypto asset securities, including SOL, MATIC, ADA, and many other assets.
Leading platforms like Robinhood, Revolut, and Bakkt delisted SOL. These actions, along with the SEC’s complaints, will later coincide with the downward pressure on the value of SOL, which declined by 9.2%, compared to the broader market’s 1.3% increase in QoQ.
SOL closed the second quarter as the 10th largest cryptocurrency, as its market cap settled at $7.2 billion.
“Revenue in SOL (total transaction fees paid in SOL) was supported by higher priority fees paid in Q1 2023. However, revenue in SOL decreased by 15.0% QoQ as the percentage of daily fees paid in the local fee markets declined.” Messari further asserted.
Over the week, Solana (SOL) has outperformed its competitors as it managed to sustain weekly gains, while other altcoins remained in the red zone. SOL has surged by more than 10% within the last 7 days. The market cap is currently on the verge of hitting $9 billion. SOL now trades at a press time price of $22.31.
Expanding DeFi is at the forefront of Solana’s vision as we advance. However, as part of its comprehensive growth strategy, the Solana ecosystem is committed to broadening into other sectors. Data from Messari shows that liquid staking derivatives (LSDs) have continued to support Solana and its DeFi ecosystem.
Solend, one of the leading DeFi protocols on the Solana network, recently saw a 59% growth in its transaction volume. Solend would outperform Orca to become the largest DeFi protocol on the Solana network. The protocol now contributes to the new capital inflow entering the Solana DeFi ecosystem.