- Solana generated more costs compared to other Layer-2 solutions despite the smaller number of users.
- The price of SOL remained stagnant while social volume was high.
2024 was for Solana [SOL] year, when the crypto sector regained its footing and the bull run began. The popularity of the Solana network saw significant growth in activity on the protocol network.
Due to the strong increase in activity, Solana outperformed many Layer-2 solutions.
Solana outperforms L2s
Despite having a potentially larger user base, L2s generate only a fraction of the costs compared to Solana.
According to recent data from analyst Michael Nadeau, Solana currently earns six times more in compensation than the combined total of the top seven L2s.
This suggests that while L2s have a wider user base, the average user on Solana spends significantly more on fees. This phenomenon can be attributed to several factors.
Solana may process a higher number of transactions per user, even with a smaller user base. Additionally, the fee structures themselves may differ, with Solana potentially charging more per transaction.
It is also possible that Solana attracts a specific user type, such as memecoin enthusiasts, who interact with the network more than the average user.
Additionally, it is worth considering the user experience (UX) argument.
A possible reason for the network’s growth could be Solana’s superior UX, which could make interacting with the platform more attractive to users.
Source:
Last month itself, the number of active addresses on the Solana network grew by 58.3%. revenue generated by the network also increased by 22% according to AMBCrypto’s analysis of Token Terminal’s data.
Source: token terminal
Interest in SOL increased
At the time of writing, SOL was trading at $151.71 and its price was up 0.2% over the past 24 hours. The volume traded had grown by 13% during this period.
Is your portfolio green? View the SOL Profit Calculator
Solana also did very well socially.
Notably, AMBCrypto’s analysis of Santiment’s data found that social volume around the token had risen consistently over the past month, indicating increased popularity on the network.
Source: Santiment