According to a report prepared by cryptocurrency analysis company Messari, Solana showed significant growth and development in the first quarter of 2024.
According to the report, Solana's average daily spot decentralized exchange (DEX) volume increased by 319% compared to the previous quarter, reaching $1.5 billion. This growth has made Solana the primary platform for individual users and memecoin traders. Additionally, projects built primarily on Solana raised $89.2 million in Q1; This figure is $2.5 million more than the total amount collected throughout 2023.
According to the report, the launch of token extensions in the Solana ecosystem has provided a set of configurable features for token launchers. These extensions have been adopted by stablecoin issuers such as Paxos and GMO Trust, as well as local crypto projects such as Photo Finish LIVE and Wen.
Additionally, the Solana ecosystem has taken notable steps towards greater decentralization with the launches of developer store Anza and growth organization Colosseum.
Despite suffering its first outage in almost a year due to a bug in an old loader program, the Solana network held up well under high usage, according to the report. Upcoming scheduler and network upgrades are expected to reduce spam and improve user experience.
Revenue, which measures all fees collected by the protocol, was up 200% from the previous quarter for SOL. With SOL's price appreciation, total quarterly revenue in US dollars increased by 597% compared to the previous quarter, reaching $98.8 million. Solana hit an all-time high of almost $4.9 million in daily revenue on March 18.
Half of these fees are burned, while the other half is distributed to block producers. Burned tokens reduced Solana's annualized quarterly inflation rate from 5.5% to 5.2% in Q1. This was the first quarter in Solana's history where incineration had a non-negligible impact, reducing inflation by 6%. SOL's issuance rate will continue to decrease by 15% each period until it drops to 1.5%.
*This is not investment advice.