Journalist
Posted:
- On December 16, no fewer than 287,000 inscriptions were struck.
- SOL generates value from transaction fees as 50% of revenue is burned.
Blockchains across the industry witnessed an explosion of inscriptions in the latter stages of 2023.
Whether it is Bitcoin [BTC]Ethereum [ETH] Virtual Machine (EVM)-enabled networks or non-EVM chains, inscriptions continue to drive demand for the block space.
The number of inscriptions on Solana exceeds a million
Solana [SOL], one of the most popular blockchains for smart contracts, was not isolated from the frenzy. According to AMBCrypto’s analysis of Flipside’s statistics, the total cumulative number of Inscriptions as of December 17 was 1 million.
Source: Flipside
Activity exploded over the weekend, with as many as 287,000 inscriptions struck in one day, December 16.
To get an idea of the madness, more inscriptions have been made in the last three days than any previous one.
Moreover, the number of creators also rose above 50,000 as of December 17. The fascinating aspect was that there were over 15,000 newcomers to the market.
Source: Flipside
Similar to Bitcoin Ordinals, inscriptions work by embedding images or other data directly into the chain. They can be used to create unique digital assets such as non-fungible tokens (NFTs) and even decentralized applications (dApps).
Solana also quickly jumped on the bandwagon. Inspired by Bitcoin’s famous BRC-20s, Solana launched its token standard: SPL-20.
Registrations began on November 16 and over the next two days more than 66,000 SLP-20s were registered on the network.
High fee income for Solana in December
Meanwhile, AMBCrypto analyzed Token Terminal data and noticed a 77% increase in monthly fees on the Solana network.
The month of December was particularly profitable, with daily fees increasing to a year-to-date (YTD) peak of almost $300,000 on December 14. However, it is not certain that inscriptions were the main driver of the rate increase.
The daily active user base also increased significantly, representing a monthly increase of 38.9%.
Source: Token terminal
What next for SOL?
Keep in mind that Solana burns 50% of his fee income. This means that the greater the fees collected, the greater the deflationary pressure on the native token SOL.
How much are 1,10,100 SOLs worth today?
SOL has been one of the best performers in the market lately, growing 23.18% over the past 30 days. CoinMarketCap.
Because the asset generates value from network activity, SOL holders can closely monitor enrollment growth to make informed decisions about their investments.