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State of Solana Q3 2024

DATE POSTED:November 1, 2024

Solana remained a prominent hub for crypto innovation and activity in Q3 2024, marked by significant developments across its DeFi, consumer, and infrastructure sectors. DeFi on Solana showed impressive growth, with TVL increasing by 26% to $5.7 billion. Kamino took the lead in DeFi TVL, while PYUSD adoption, combined with new product innovations, contributed to the DeFi sector's expansion. Jupiter and Raydium maintained leading positions in decentralized exchange volumes, benefiting from the ongoing memecoin activity and product launches like Moonshot. The ecosystem saw major strides in stablecoins and liquid staking, with PayPal's PYUSD expanding on Solana and Sanctum gaining traction in liquid staking solutions. These innovations underline Solana's ability to attract users seeking yield-bearing and privacy-focused assets. The network also enhanced its consumer-facing offerings, with Solana Mobile announcing new hardware and Dialect and the Solana Foundation introducing blinks, a new feature designed to enhance blockchain interactions across digital environments. Infrastructure improvements, such as the rollout of V1.18 and Firedancer going live on mainnet in non-voting mode, have strengthened Solana's transaction scheduling and block production capabilities, further positioning it for enhanced performance and scalability. The introduction of solutions like ZK Compression by Light Protocol and Helius aims to keep users on the L1 while scaling activity efficiently. The quarter also saw substantial financial growth, including a combined $173 million in fundraising announcements across 29 projects, highlighting continued investor confidence. Institutional interest remained robust, with Visa expanding its USDC settlement pilot to Solana and Société Générale's digital assets subsidiary adding support for Solana-based stablecoin issuance. Despite market fluctuations, Solana's market cap rose by 5% QoQ to $71 billion, and the ecosystem continued to be a top choice for both retail and institutional users. Overall, Q3 2024 demonstrated Solana's resilience, scalability, and increasing adoption, solidifying its position as a leading blockchain network with strong fundamentals for future growth.

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