Solana remains extremely large network despite all happenings we have witnessed in last 45 days
Solana has remained in the industry despite the doom surrounding it since FTX Diversity, the network still remains one of the largest in the industry. After comparing it to Ethereum, it becomes clear that Solana easily reaches the level of the second largest network in the market in many ways.
In one of his most recent posts, Chris Burniske shared surprising data and highlighted the fact that Solana had executed just as many NFT transactions as Ethereum to date. Such numerous transactions tied to NFT should not surprise users that much: back in 2021, Solana became one of the most popular networks among NFT creators thanks to the relatively cheap transactions and the popularity of networks in the space.
Ethereum’s fees, on the other hand, are reaching obscene levels: users had no choice but to pay up to $150 per operation on the network, making Ethereum practically unusable for most users in the industry.
The same tendency became relevant for the DeFi industry. At the beginning of the bull run, the majority of decentralized applications were running on Ethereum. But as the bull market ascended toward its peak in November, the volume of decentralized solutions tilted toward alternative networks like Solana or Layer 2s, for the reason we mentioned above: extremely high fees that made the network unusable.
Unfortunately, the death of both the DeFi and NFT industries has resulted in a gradual outflow of funds from both the Solana and Ethereum networks. While the other bear is successfully making its way through the market thanks to a variety of updates and improvements, Solana has lost most of its value and may need much more than the support of retail investors to recover in the near future.
