Solana Ecosystem Expands With New Blockchains, 84 Million Users

Solana, renowned for its high performance in speed and cost, has sparked interest among crypto developers who are leveraging its underlying technology to launch new blockchains. This trend has led to the emergence of several layer-1 blockchains that aim to surpass Solana's capabilities. These include Fogo, Pythnet, Solayer, JupNet, Cube, and Thru, each with unique features and goals.

Fogo, for instance, aims to push the limits of the Solana Virtual Machine (SVM) by using a permissioned validator set with multi-local consensus. This approach, while sacrificing some decentralization, is expected to enhance performance. Fogo has already raised $8 million at a $100 million valuation through a crypto crowdfunding platform.

Pythnet, on the other hand, is an SVM app chain run by Pyth operators who provide price data. It has been operational since August 2022 and serves as a decentralized way to stream price data. Solayer, initially a restaking protocol, pivoted to launching its own layer-1 powered by its InfiniSVM, claiming to achieve one million transactions per second, although this figure is disputed by some Solana developers.

JupNet, developed by the Solana DeFi giant Jupiter, is an omnichain network aiming to aggregate all of crypto into a single decentralized ledger. Little is known about JupNet, but it is expected to be Jupiter's most ambitious venture yet. Cube Exchange is building an SVM L1 as part of a hybrid centralized-decentralized exchange, while Thru, co-founded by a former Solana core engineer, is developing a new virtual machine called the ThruVM.

The growing interest in the Solana ecosystem is further evidenced by the recent acquisition of a Solana validator business by DeFi Development Corp for $3.5 million. This acquisition allows the company to self-stake its $SOL holdings, generating additional revenue and aligning more closely with the decentralized economy. The move comes after the firm filed with the SEC to offer up to $1 billion in securities, with some proceeds earmarked for acquiring more $SOL.

Solana's user base has surged to 84 million this month, attracting the attention of major financial institutions. Projects like Solaxy, the world's first Solana layer 2 blockchain, are emerging as potential beneficiaries. Solaxy offers a 120% APY, significantly higher than the 12% APY available to Solana validators, and aims to tackle Solana's congestion issues by bundling and computing transactions on a layer 2 that is cheaper, faster, and more reliable than the Solana main chain.

Jito, a liquid staking pool, allows users to generate revenue by staking their $SOL without managing validator hardware. It uses MEV optimization to structure Solana blocks and maximize delegators' returns, increasing staking efficiency and opening delegators to additional revenue. Render, a decentralized marketplace for trading GPU power, is another crypto that stands to benefit from the inflowing interest in Solana. It enables AI developers to build and operate AI models without expensive GPU hardware, tapping into the Render Network for computing power at a low cost.

While sophisticated market participants are increasingly moving to Solana, meme coins remain a central focus of the ecosystem. Fartcoin, with its simplistic name, is gaining traction among meme coin fans. Despite the overall market downturn, Fartcoin has shown a 2% profit this week and is up over 400% from its March lows, making it a project that investors should monitor closely in the coming weeks.