Hype doesn’t always translate into greater adoption. The on-chain data for the second quarter 2022 shows that Solana (SOL), surpassing Ethereum in daily transactions despite numerous drawbacks due to both macroeconomic conditions as network outages.
According to Nansen’s State of the Quarter Report, Solana’s daily transactions increased steadily throughout the second quarter. Solana ended with more than 40,000,000 daily transactions, compared to Ethereum’s 1,000,000 daily transactions between April-June.
Solana vs. Ethereum daily transactions data. Nansen
The significant rise in daily transactions observed by Solana was based on daily non-vote transactions, as opposed to Ethereum. This despite the fact that Solana has higher volatility. Decentralized exchanges (DEX), such as Mango Markets, Serum and the Solana-based decentralized Oracle network Switchboard, were the most prominent DApps that contributed to the rise in daily transactions.
Top Solana DApps based on transactions. Source: Nansen
Solana, when looking at vote transactions, recorded an average of between 100 million and 200 million transactions per hour. This was supported by an increase in wallets, from approximately 400,000 to almost 1 million towards the end of May 2022.
Daily transactions on Solana Source: Nansen
The rapid growth of Solana can be attributed a series funding programs that began in mid-2022 to support the GameFi, Decentralized Finance (DeFi), and Nonfungible Token (NFT) ecosystems.
Mega Septiandara (a Nansen research analyst) stated, “Whether it be the establishment of Korea grant and investment funds or the many upcoming events that welcome builders and users, Solana ecosystem thriving.”
Related: Solana calls network outages his ‘curse’
A governance proposal was made in Oct 2022 and highlighted the possibility of Helium (an Internet of Things (IoT), blockchain network) transitioning to Solana.
Cointelegraph reported that Helium developers recommended the shift in order to “improve operational efficiency, and scalability.”
“Both have been difficult for network participants in the last few months due to reduced proof-of coverage activity due network size and validation load as well as packet delivery issues.
If approved, Helium-based IOT, HNT and MOBILE tokens as well as Data Credits (DCs), would be transferred to Solana’s blockchain.