According to a new analysis by on-chain expert Delphi Digital, there are some parallels between what Solana (SOL) may be planning for 2024 and Ethereum’s (ETH) DeFi Summer of 2020.
“Safest bet” in non-EVM chains: Analyst on Solana (SOL)
Solana (SOL), which saw a significant climb in 2020 and a severe collapse, may rise from the ashes and mirror Ethereum’s (ETH) success over the ensuing bull market. Such findings were communicated to his Twitter followers yesterday, August 11, 2023, by analyst and podcaster Sal Qadir.
The analyst acknowledges that the present performance may be compared to that of Q4, 2019, based on the four-year cycles methodology. At the same time, the blockchain may be experiencing its own version of Ethereum’s 2020 DeFi Summer at the moment considering the rise in DeFi activity on Solana (SOL).
Additionally, Solana (SOL) is without a doubt the top among all L1 blockchains outside of the Ethereum Virtual Machine (EVM) ecosystem in terms of the total value locked in DeFi protocols.
The liquid derivatives staking environment at Solana (SOL) has enormous potential for development. Qadir predicts that if SOL liquidity providers start looking for higher yield, “billions of capital” might be infused depending on the ratio between all SOL staked and the TVL of Solana-based LSTs.
According to a variety of technical analysis indications, Solana’s (SOL) price might make a stunning comeback in 2023, as previously reported by U.Today.
Flashbots, NFTs might contribute to Solana (SOL) success
In addition to TA triggers, a few technological developments that have already been included in the protocol or might be added in the near future could help Solana (SOL) expand.
For instance, modern Solana DeFis from Jito Labs may offer more sophisticated solutions to MEV’s issues than current Ethereum-centric protocols.
Additionally, according to statistics from Delphi, the minting of non-fungible tokens on Solana (SOL) might be about 3,000 times less expensive than on Polygon (MATIC) because to data compression scaling technology.
