Solana (SOL): Details About the Chain’s Q3 Performance

Housing more than 350 Dapps (decentralized applications), the new Messari report showed that Solana’s renowned open-source network witnessed upticks and some downsides in the third quarter.

Messari’s State of SOL Q3 2022 report discovered that the 3rd quarter bearishness confirmed the blockchain’s capability to enhance its growth and the project’s fundamental user base. On the growth side, Messari discovered Solana’s non-vote transactions increased by more than 70% in the 3rd quarter over the previous one.

Moreover, it endured extreme volatility. Meanwhile, the project’s TPS (transaction-per-second) hit an ATH in Q3, averaging about 3200 TPS.  Messari noted that the transaction per second gained 40% from the previous quarter. The analytic platform analyzed what could have triggered the transaction activity surge on Solana.

Messari noted that high network performance, not more users, contributed to the stabilized QoQ and increased transaction activity. Moreover, Solana maintained growth in its NFT ecosystem, despite the faded interest in PFP non-fungible tokens in Q3.

The network’s daily new collection increased by 19.3% from July to September, surpassing eight million. Surprisingly, though Solana noted an increase in daily new NFTs in Q3, the network’s secondary sales volume plunged by 62%.

Why so? Messari noted that macro forces could have dented the secondary market in Q3, with unique sellers outpacing buyers. It added that second-quarter sales volume soared, and Magic Eden’s success, Solana’s OpenSea integration, and Metaplex’s Collection Standard adoption supported the growth.

There Were Declines

On the downside front Q3, the data indicated that user activity in Unique Signers and Unique Fee Payers dwindled on Solana. Solana’s Unique Fee Payers averaged 223,015 in the three months. That sowed a 31.4% drop from Q2’s 324,943. h

Meanwhile, the network saw its volume plunge by 25% in the 3rd-quarter, with average transaction fees dipping by 42% in that timeframe. Furthermore, Solana’s DeFi protocols saw their total value locked plummeting by 16% in the third quarter.

Though the TVL noted declines, Messari argued that Solana retained a healthy TVL distribution across applications. Currently, 50% of the total value locked was across the network’s long-tail decentralized finance protocols.

Feel free to share this article.