- Solana has introduced a token extension program.
- Development activity soared, while Solana’s TVL fell.
According to a January 24 update, developers and projects building on-chain can now access token extensions on Solana [SOL]. The token extension would give developers access to certain use cases.
Some of these use cases are not available on public blockchains.
A look at the disclosure showed that the use cases include managing Real World Assets (RWAs) and developing stablecoins.
For context, token extension is a program that allows the creation of fungible and non-fungible tokens at the core protocol level.
In total, Solana introduced 13 token extensions.
Can increasing development promote adoption?
Also the CEO and co-founder of the project, Anatoly Yakovenko commented about the development and said that
“We already see the potential to build using token extensions through deployments from some of the most recognizable names in crypto.”
AMBCrypto checked whether Solana’s development activity was consistent with the introduced feature. According to Santiment factsdevelopment activity has increased from 1.35 to 1.88 over the past five days.
Source: Santiment
Development activities measure work done on public GitHub repositories. If it increases, it means that developers are actively implementing new features.
However, when the metric drops, it means that the effort to polish the network has decreased.
For SOL’s price, it has gained 3.80% since the development went public. As shown above, the press time value of the token was $87.87.
Furthermore, the token expansion feature could allow for the introduction of new cryptocurrencies built on Solana.
Over the past year, the blockchain has emerged as one of the go-to places to launch tokens. This brought Bonk, among others, with him [BONK]Myro [MYRO]and dog hat [WIF].
So, in the coming months, market participants can experience a new wave of cryptocurrencies, powered by the Solana blockchain.
In addition to the potential token implementation, Solana also plans to onboard companies. Recall that the project collaborated with payment giant Visa. It also had some integration with Google and Shopify.
Head of Payments at the Solana Foundation, Sheraz Shere noted in a press statement that the project could do more. He expressed:
“With token extensions, we are expanding what is possible for enterprise blockchain adoption by enabling features important to large regulated enterprises.”
TVL falls, but it’s just New Year’s
Meanwhile, Solana’s Total Value Locked (TVL) is down 21.30% over the past 30 days. According to DeFiLlamaat the time of writing, the TVL was $1.34 billion.
The TVL tracks the value of assets locked or deployed in a protocol. When the TVL increases, market participants consider a project to be reliable. However, a decline suggests otherwise.
Source: DeFiLlama
Despite the decline, Solana has established itself as one of the projects that can have a long life on the market. One of the reasons could be related to the situation between 2022 and 2023.
How much are 1,10,100 SOLs worth today?
In 2022, the blockchain experienced a massive overall decline.
However, 2023 turned out to be worth it. In this new year, further development would reveal whether Solana would maintain the momentum of the previous year.