Solana ranks fifth in monthly active developers among all blockchain networks, trailing behind Ethereum, Polkadot, Cosmos, and Bitcoin.
The recent surge in SOL token prices has triggered a bullish trend across Layer 1 public chains. On December 12, Avalanche's AVAX and Cosmos' ATOM saw daily gains exceeding 20%, with AVAX breaking $40 to enter the top ten by market cap. NEAR rose over 30% in 30 days, while Fantom's FTM increased by 15% in two weeks.
Last week, the Jito protocol's JTO airdrop reignited interest in Solana's ecosystem, revealing a robust recovery and emerging native applications like Jupiter (a trading aggregator) and Marinade Finance (a liquid staking platform). Today, Solana's TVL surpassed $1 billion ($1.044 billion), with a 24-hour trading volume of $912 million, making it the second-largest Layer 1 network after Ethereum ($1.23 billion).
Meanwhile, competitors like Near, Fantom, and Avalanche show stagnant or declining ecosystem growth despite token price rallies. For instance, Avalanche's 24-hour trading volume ($198 million) lags Solana by 5x, while Fantom ($12 million) and Near (a few million) trail significantly. Their TVLs are also 10x lower than Solana's.
Key Questions:
- Why can't Near and other Layer 1 chains replicate Solana’s growth flywheel?
- What drives these disparities in ecosystem development?
Solana’s Full Recovery vs. Near and Fantom’s Stagnation
While Solana thrives with airdrops, new applications, and soaring metrics, Near and Fantom’s TVLs have plummeted to tens of millions, with daily transactions below $10 million. As of December 15:
- Fantom: TVL $84M, daily volume $14M
- Near: TVL $59M, daily volume $8.4M
- Solana: TVL $1.044B, daily volume $920M
FTX’s Collapse & Solana’s Resilience:
Solana faced a severe crisis post-FTX, with SOL dropping to $10 and TVL stabilizing at ~$200M. However, recent developments like Pyth Network’s airdrop, Wormhole’s $225M funding, and Jito’s governance token have revitalized its ecosystem. Community sentiment highlights Solana’s user-centric rewards and developer loyalty.
Fantom’s Multichain Crisis:
Fantom’s ecosystem collapsed after Multichain’s $200M bridge exploit in July, leading to stablecoin depegs and protocol shutdowns. Despite upgrades like Fantom Sonic and accelerator programs, its TVL remains at $84M, with FTM at $0.40.
Near’s Wintermute Controversy:
Near’s management chaos escalated when Wintermute accused it of reneging on a $11.2M USN redemption deal. Despite appointing a new CEO and launching initiatives like Near DA, its ecosystem remains inert, dominated by meme coin trading.
Developer Activity: The Core Differentiator
Solana’s developer community thrives with 268 full-time and 946 total active developers (October 2023), ranking fifth globally. In contrast:
- Avalanche: 133 full-time, 472 total
- Near: 103 full-time, 441 total
- Aptos: 55 full-time, 174 total
Why Developers Prefer Solana:
- Technical Excellence: High-quality codebase praised by figures like Vitalik Buterin.
- Efficiency: Only 2 engineers needed to run apps vs. 30+ for some chains.
- Supportive Environment: Neon EVM compatibility, Solang compiler, and state compression for NFTs reduce costs.
- Community: Hackathons (e.g., Grizzlython, Hyperdrive) with $1M+ prizes foster innovation.
- Global Outreach: $1M grants for Chinese-speaking developers and India-focused growth strategies.
Solana’s flywheel: Strong tech → developer attraction → ecosystem growth → user adoption.
Why Can’t Near and Fantom Replicate This Flywheel?
- Inadequate Infrastructure: Fantom lacks reliable bridges; Near’s wallet UX is complex.
- High Overhead: Developers must build ancillary tools (e.g., Manta spent months on a Polkadot wallet).
- Resource Gaps: Many chains fail to offer grants or risk capital like Solana’s $10M AI fund.
- Community & Liquidity: Solana’s vibrant community and deep liquidity attract builders.
Developer Priorities: Chain stability, low entry barriers, operational costs, funding, and composability.
Final Insight:
Solana’s success stems from a developer-first approach, combining cutting-edge tech, robust support, and community engagement—a formula most Layer 1 chains lack. Until they address these gaps, replicating Solana’s flywheel remains elusive.
FAQ
Q1: What sparked Solana’s recent resurgence?
A: Airdrops (e.g., JTO, PYTH), major funding rounds (e.g., Wormhole’s $225M), and low-cost, high-speed transactions fueled its revival.
Q2: How does Fantom plan to recover post-Multichain?
A: Upgrades like Fantom Sonic and accelerator programs aim to attract builders, but user traction remains weak.
Q3: What’s next for Near’s ecosystem?
A: Near DA and zkWASM collaborations hint at modular blockchain ambitions, but developer trust issues persist.
Q4: Why is developer activity crucial for blockchain growth?
A: More developers → more apps → more users → more liquidity, creating a self-sustaining cycle.
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