Institutional investment in Solana-based blockchain applications rebounded in the third quarter of 2024, with Solana’s decentralized applications (DApps) attracting $173 million across 29 funding rounds.
This marks a 54% rise from the previous quarter, signaling renewed interest in the Solana ecosystem despite a 37% decline in the number of funding rounds, according to a recent Messari report.
Per the report, this influx of capital represents the highest investment level in Solana projects since Q2 2022.
Solana’s Growing Profitability Drives Investor Confidence
A notable factor driving investor confidence is Solana’s growing profitability.
On October 28, Solana even surpassed Ethereum in daily fee revenue, generating $2.54 million compared to Ethereum’s $2.07 million.
The report highlights that Solana’s approach to scaling, which focuses on increasing transaction throughput and minimizing fees on a single layer, has earned it a reputation as an “Ethereum killer.”
This strategy contrasts with Ethereum’s reliance on layer-2 solutions to improve scalability.
The third quarter also saw a dramatic increase in Solana’s fee-related metrics.
Average daily fee payers reached 1.9 million, an impressive 109% increase quarter-over-quarter, while new fee payers surged 430% to 1.3 million.
However, the network’s daily transaction volume, excluding voting-related activity, dropped by 12% to 62 million transactions.
The average transaction fee rose 6% to 0.00015 SOL (roughly $0.023), while the median transaction fee decreased 19%.
By the quarter’s end, Solana ranked third among blockchains by tokenized treasury assets, with $123 million, trailing Stellar’s $422 million and Ethereum’s $1.6 billion.
The network’s tokenized treasury figures are expected to grow further, especially with the involvement of prominent financial players.
𝐒𝐨𝐥𝐚𝐧𝐚 𝐢𝐬 𝐜𝐨𝐦𝐢𝐧𝐠 𝐭𝐨 𝐌𝐞𝐭𝐚𝐝𝐚𝐩𝐩, bringing speed, lower fees, and endless opportunities to snipe, trade, and profit like never before.#Metadapp #Solana pic.twitter.com/tiAO8VH4Rq
— Metadapp.com (@MetadappHQ) October 28, 2024
Franklin Templeton, an asset management giant, plans to launch a money market fund on Solana, while Societe Generale aims to expand its euro-denominated stablecoin to the Solana blockchain.
Currently valued at $37 million on Ethereum, this stablecoin launch could bolster Solana’s position in the rapidly evolving blockchain finance landscape.
Solana Unveils New Seeker Smartphone
In September, Solana officially introduced its latest smartphone, named “Seeker,” which the company touts as a significant leap forward for Web3 mobile technology.
Priced at roughly half the cost of its predecessor, Seeker aims to attract users with enhanced features and a broader appeal beyond just memecoin enthusiasts.
One of Seeker’s key features is its upgraded DApp store, which aims to give developers a platform to launch new applications quickly.
Furthermore, the new model’s hardware upgrades are also intended to attract buyers.
The original Saga received criticism for its technical limitations compared to mainstream devices like the iPhone or Google Pixel.
Now, Seeker would come with a higher-quality screen, improved cameras, and a better battery, making it “lighter, brighter, and better” than its predecessor.
In other news, Travala, a cryptocurrency-based travel booking platform, has expanded its payment options to include major tokens from the Solana blockchain.
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