Solana is making waves in both the blockchain and gaming industries, with recent developments shining the spotlight on its growing influence. The network saw record-breaking revenue, generating $8.7 million on Oct. 23, while game developer Studio369 announced the migration of its mech shooter MetalCore to Solana to take advantage of faster transactions.
Solana Sets New Revenue Record, Solidifying Its Position as a Top Blockchain Contender
Solana, a leading layer-1 blockchain network, has once again captured the spotlight by achieving record-breaking network revenues. According to data from Blockworks Research, Solana hit an all-time high in economic value generated from its network activity on Oct. 22. The upward trend continued the following day, with the blockchain generating approximately $8.7 million in network revenue on Oct. 23, up from just under $8 million the previous day.
The $8.7 million figure represents the total revenue generated across various sources, including base fees, priority fees, and tips. The surge in economic value is attributed to the blockchain’s rapidly expanding ecosystem, which has seen significant growth in both decentralized finance (DeFi) and non-fungible token (NFT) sectors.
Solana’s recent achievements are not limited to revenue milestones. The network has continued to outperform its closest competitor, Ethereum, in several key metrics. Since the start of 2023, Solana’s native token, SOL, has outperformed Ethereum’s Ether (ETH) by an astonishing 600%. This dramatic price surge has positioned Solana as a serious challenger to Ethereum’s dominance in the smart contract and DeFi spaces.
In terms of total value locked (TVL), Solana has also seen a meteoric rise. According to data from DeFiLlama, the TVL on Solana surged from less than $250 million at the beginning of 2023 to over $6.8 billion as of Oct. 24. This growth can be attributed to the increasing popularity of Solana-based DeFi protocols, NFT marketplaces, and other blockchain applications that have helped drive user engagement and investment in the network.
Solana’s ascent has not gone unnoticed in the broader blockchain industry, particularly in the realm of transaction fees. In a significant milestone reached in July, Solana surpassed Ethereum in weekly total fees for the first time, generating approximately $25 million in weekly revenue compared to Ethereum’s $21 million. This achievement marked a turning point in the ongoing competition between the two networks.
The disparity in fee revenue between the two blockchains can be attributed, in part, to Ethereum’s recent Dencun upgrade in March, which reduced transaction fees by around 95%. While the fee reduction made Ethereum more accessible to users, it also resulted in a substantial decrease in network revenue. In contrast, Solana has maintained a consistent level of network activity and fees, bolstered by its fast transaction speeds and low costs, which have attracted a growing number of developers and users.
The surge in Solana’s network activity has been fueled by a variety of factors, including a recent wave of meme coin trading on Solana-based platforms such as Pump.fun and Moonshot. These platforms have gained popularity among traders, driving increased transaction volumes on the Solana network. The enthusiasm for meme coins has translated into higher revenue from priority fees and tips as traders seek to secure their transactions during periods of network congestion.
Decentralized exchanges (DEXs) on the Solana network have also played a crucial role in the blockchain’s rise. For example, Raydium, a leading Solana-based DEX, surpassed the Ethereum network in terms of 24-hour fee revenue on Oct. 21, generating $3.4 million compared to Ethereum’s $3.35 million.
Solana’s Path to ETF Inclusion
As Solana continues to gain momentum, it is increasingly being viewed as a candidate for inclusion in cryptocurrency-based exchange-traded funds (ETFs). With Bitcoin and Ethereum already featuring prominently in ETF discussions, Solana’s SOL token is widely considered to be the next in line for inclusion in US-based ETFs. Such a development would further enhance Solana’s visibility and legitimacy in traditional financial markets, potentially attracting a new wave of institutional investors to the network.
While Solana’s recent achievements highlight its rapid ascent, the network faces challenges as it continues to scale. The blockchain’s high throughput and low fees, which are among its key selling points, also make it susceptible to potential network congestion and centralization concerns. As Solana continues to grow, maintaining a balance between decentralization, scalability, and security will be essential to sustain its momentum.
Ethereum, despite facing increased competition from Solana, remains a dominant force in the blockchain space. The network processed around $4 trillion in settlement value over the past year, in addition to $5 trillion in stablecoin transfers, positioning it as one of the largest payment networks in the world. According to Matthew Sigel, head of digital asset research at VanEck, Ethereum is projected to generate up to $66 billion in annual free cash flow by 2030, further solidifying its place in the digital asset landscape.
Solana, however, is proving to be a formidable contender, with its expanding ecosystem and recent milestones demonstrating its potential to reshape the competitive dynamics within the blockchain industry. If Solana can continue to innovate and scale effectively, it may well challenge Ethereum’s position as the go-to blockchain for DeFi, NFTs, and other decentralized applications.
Studio369 Moves ‘MetalCore’ to Solana Blockchain, Tapping Into High-Speed Transactions
In related news, game development company Studio369 has announced a major move to bring its mech shooter game, MetalCore, to the Solana blockchain, marking a significant shift aimed at enhancing the gaming experience through faster and more efficient transactions. The move is poised to take advantage of Solana’s current average processing rate of approximately 3,000 transactions per second, making it one of the fastest layer-1 blockchains in operation.
Studio369’s decision to migrate MetalCore to Solana comes amid increasing demand for high-performance blockchain networks capable of handling the unique requirements of modern gaming. By integrating with Solana, MetalCore players will benefit from near-instantaneous on-chain actions, which are crucial for maintaining a seamless gaming experience. The game’s developers emphasized that Solana’s high throughput is key to ensuring that in-game actions that require blockchain interactions, such as transactions and asset management, are processed with minimal delays.
In addition to Solana’s speed, the MetalCore migration will utilize Solana Labs’ GameShift platform. This platform offers a comprehensive suite of tools, including a storefront and payment systems that streamline in-game purchases, allowing players to buy, sell, and trade assets more easily. The game itself, an open-world title that features both player-versus-player (PvP) and player-versus-environment (PvE) combat, will enable users to collect assets from defeated opponents and convert them into Web3 assets for trading on the blockchain.
The migration of MetalCore is part of a broader trend of blockchain gaming protocols flocking to Solana to take advantage of its high-speed transaction capabilities and low fees. The network has emerged as a popular choice for developers seeking to create scalable and cost-effective gaming experiences.
Solana’s appeal extends beyond just gaming. Decentralized physical infrastructure networks (DePINs) have also found a home on the blockchain, citing its scalability and transaction speed as major draws. For example, MetaBlox’s Roam network, which focuses on decentralized proof-of-location and WiFi access, moved to Solana in April, citing the same benefits that attracted Studio369. Similarly, in 2023, the decentralized wireless communications protocol Helium transitioned to Solana, solidifying the blockchain’s reputation as a go-to platform for projects that require rapid and efficient processing.
While Solana’s capabilities in processing transactions at scale make it an attractive platform for blockchain gaming, the network has faced reliability challenges over the years, experiencing several significant outages. The most recent occurred on Feb. 6, 2024, lasting for approximately five hours and causing temporary disruptions to on-chain activity. These incidents have raised concerns about the network’s stability, leading to ongoing efforts to improve Solana’s infrastructure.
To address these issues, the Solana Foundation is rolling out a series of upgrades, including ”pared-down versions” of its highly anticipated Firedancer upgrade. The full release is slated for 2025, with interim updates designed to bolster the network’s resilience as user activity continues to grow. These efforts come amid a period of rapid expansion, with Solana’s monthly active addresses reaching over 100 million in early October—a new record and a significant increase from the 509,000 tracked at the beginning of 2024.
Blockchain Gaming: The Next Frontier for Solana
The migration of MetalCore is part of a broader trend in the gaming industry, where developers are increasingly exploring blockchain technology to enhance gameplay and introduce novel economic models. Blockchain gaming allows for true asset ownership, where players can trade, sell, or even rent in-game items across various platforms, blurring the lines between virtual and real-world economies.
Solana’s unique characteristics make it particularly well-suited for gaming applications. Its high transaction throughput, coupled with minimal fees, enables developers to build complex game mechanics that involve frequent on-chain interactions without burdening players with costly gas fees. For MetalCore, these features will be instrumental in allowing players to engage in real-time asset transfers and purchases seamlessly, further integrating the game’s economy into the Web3 ecosystem.
This article was originally Posted on Coinpaper.com
