Amid extreme bear market conditions in crypto since the beginning of this year, ByBit revealed in a report that the Solana ecosystem experienced impressive high growth in the second quarter of 2022 thanks to GameFi and DAOs.
ByBit reported that during the upgrades of the Solana network, the network faced two major outages. Although, the upgrades have shown “significant improvements in terms of transaction processing and reliability.”
The report also highlighted issues with Solend, Slope Finance, Crema, Nirvana, and Saga. The reason behind these examples is security concern over a network that needs to be identified and resolved.
Also, some major events in Q3 such as Crema Finance’s exploit, Nirvana Finance Exploit, and Slope Finance wallet breach outlined in the report, “were pivotal on the premise of security.”
Furthermore, the Solana network has seen a “fairly volatile range” in transactions per second (TPS) in Q2. The network observed a minimum of 1,500 TPS and a maximum of 2,900 TPS in an early quarter.
Daily active wallet figures show positive growth in Q2 as it increased from more than 205,000 to a high of 450,000 in mid-Q2. However, this number went down to under 300,000 at the end of the quarter.
Apart from this, Solana’s total value locked (TVL) declined by around 68% in Q2, from $7.76 billion to $2.45 billion.
NFT interaction on the Solana-based NFT platform, Magic Eden, is impressive and remarkably bridged the gap between Solana and Ethereum’s NFT developments. However, the gap was shortened, where OpenSea’s trading volume was 3x of
Magic Eden at the beginning of the quarter but was merely 1.5x by quarter end.
ByBit also mentioned an immersive number of DAOs on Solana, which increased from 100+ in January to 800+ DAOs at the time of writing.
The report stated that “Solana has been catching up with Ethereum with its number of DAOs and quality of decentralized governance, triggered by DAO tools that ease the creation and management of DAOs.”