Solana (SOL) earned Great interest in the cryptocurrency market, outpacing its peers with an impressive upward trend of 79% over the past 30 days. As its price continues to rise, questions have emerged regarding how the Solana ecosystem will react to this rise.
On this topic, the Jarvis Labs team made an interesting presentation ideas On SOL’s current bull market and the state of its ecosystem, and addressing the factors affecting its growth.
Is the Solana ecosystem underdeveloped?
Despite the rise in SOL prices, the total value locked (TVL) on Solana has risen It only doubled during this period, failed to match the four-fold increase in the price of the SOL token. This disparity raises concerns about the growth and development of the Solana ecosystem in 2023. A closer examination of the ecosystem reveals a significant lag compared to the rapid rise in the price of SOL.
The Jarvis Labs team highlights what’s new A wave of projects It injects liquidity into Solana’s ecosystem, providing hope for its growth. It is worth noting that these projects were launched within the past year, creating a diverse ecosystem instead of focusing on similar offerings.
Among TVL’s biggest gainers, seven projects have emerged recently, expanding Solana’s reach.
Several projects have drawn attention within the Solana ecosystem, demonstrating their ability to drive growth. Offered by Jito, a liquid mortgage servicing company Maximum extractable value (MEV) rewards combined with staking returns.
Marginfi, another noteworthy project, offers Liquid Mortgage Tokens (LST) based on the Jito platform, as well as a lending service focused on risk management. Additionally, decentralized exchanges like Phoenix and Jupiter have excelled in their respective fields.
Surprisingly, many successful projects within the Solana ecosystem have not yet released their tokens. The absence of tokens, according to Jarvis Labs, has contributed to “the lag in Solana’s TVL” despite the higher token price.
Sustainable symbolic design
The reluctance to offer tokens stems from past experiences, where projects associated with the now-bankrupt cryptocurrency exchange FTX and its trading arm Alameda Research suffered significant losses, leaving behind significant losses. Cautious feelings Among Solana developers, according to a Jarvis Labs analysis.
The Jarvis Labs team believes that while tokens have the potential to be valuable assets, the cautionary tale of FTX-related projects highlights the importance of sustainable token design. Fair distribution, reasonable supply, and clear use cases are essential to creating tokens that add real value to the ecosystem.
Despite the challenges faced by the Solana ecosystem, the emergence of new projects and the upcoming launch of tokens through some protocols provide hope for its future growth.
Ultimately, Jarvis Labs suggests that by adopting sustainable token designs and maintaining a focus on ecosystem development, Solana can unleash the full potential of its “thriving network.” The Jarvis Laboratories analysis concluded that:
So, for all the Solana protocols out there: let’s make tokens great again. Let’s create tokens that are more than just quick cash, tokens that contribute to the growth and sustainability of the ecosystem.
SOL price is approaching the $42 level, witnessing a notable rise of 3.7% within 24 hours.
Featured image from Shutterstock, chart from TradingView.com