Solana monthly analysis – April 2022


The Solana channel has had a winning streak this month, starting with listing on Robinhood earlier this month. Terra Bridge also revealed that it has brought support for Solana and other crypto tokens. This week, financial markets firm Maple Finance revealed that it has expanded to Solana. The institutional capital market hopes its Solana app will have $300 million in liquidity before next year.

More recently, Solana Ventures announced a partnership with Yield Guild Games to promote blockchain gaming in the Southeast Asian market.

In the market, while Solana’s native token was not the standout altcoin, it performed decently this month in a dominant bear market. Here’s a look at Solana’s performance over the month:

Market Metrics

Market capital

Solana’s outstanding value topped the $46 million mark in the first week of April — a mark the network hadn’t reached since Jan. 17. However, by the middle of the month, it had fallen back to the levels seen towards the end of March. Solana printed a high monthly market capital of $46.35 billion on April 4 before dropping to a monthly low of $32 billion on April 18. The recovery has since remained roughly static. At the time of writing, Solana has a market capitalization of $32.35 billion and ranks sixth in assets by this metric.

Circulating Power

The outstanding supply of SOL at the start of the month was 325,254,900 tokens at $134.50 against the dollar.

As the price declined, the circulating supply maintained an upward trajectory towards the end of the month. Currently, SOL is trading at $88.95, while the circulating supply has risen to 334,403,259 SOL.

Token, Transactions, and Account Metrics

Non-voting daily transactions

The all-time transaction count on Solana stood at 71,622,993,538) on the last day of April. Only 11.64% of all transactions in April were marked as non-voting.

The number of daily non-voting trades followed a series of lows and highs in April. At the start of the month, there were 18.26 million non-voting transactions. This figure quickly dropped in the first days of the month and, on April 9, unearthed the lowest daily number of the month – 6.53 million transactions.

Subsequently, that number hit a monthly high of 21 million on April 15 – more than triple the lowest figure recorded during the month. While this figure fell to 11 million three days later, it rose to 20 million between April 21 and 22. On the last day of the month, only 8 million non-voting transactions were recorded.

Daily active wallets and new daily token accounts

The number of daily active wallets on Solana – each of which can be linked to more than one token account – grew fairly steadily in April. The only prohibited event was a one-day drop on April 20.

As of April 1, there were 626,830 active wallets on Solana. The count stagnated and moved sideways before climbing after April 7, when there were 497,460 active wallets. The increase continued, more or less steadily, until April 20, when there was a sudden drop. There was a recovery the next day and growth resumed towards the end of the month. The last count, as of April 31, recorded 829,330 active wallets.

Tokens

The Solana Program Library (SPL) is the token standard on the Solana blockchain, which runs a common implementation for Solana tokens – fungible tokens (SPL tokens) and non-fungible tokens (NFTs).

New daily SPL tokens (excluding NFT)

Solana saw the highest number of new daily SPL tokens so far this year in April. Starting the month at 154 tokens, this metric reached 397 on April 14th. The lowest tally for the month occurred on April 10, when there were barely 68 new SPL tokens on the network.

New Daily NFTs

Like new SPL tokens, the number of new non-fungible tokens (NFTs) created on Solana has reached a year-to-date high last month. 98,510 NFTs were created on the channel on April 8, the highest ever since December 28. This yearly high followed an April low of 41,020 on April 6.

Daily SPL token transfers (including NFTs, excluding wrapped SOLs)

The number of daily SPL token transfers increased during the month. It dipped slightly at first, from 4.77 million (519,570 active token accounts) on April 1 to 3.12 million (380,860 active accounts) on April 9 – the lowest figure recorded during the month. A prolonged day-to-day increase then saw that figure hit a monthly high of 4.96 million token transfers on April 24.

Daily SOL transfers (including SOL and wrapped SOL)

The total number of wrapped SOL and SOL transfers dropped significantly throughout April. On the first day of the month, there were 5.14 million such transfers. That number gradually declined over the month, only recovering after dropping to 2.02 million transfers on April 9. 1.79 million transfers were recorded on the last day of the month – the lowest figure in April.

Network Metrics

Daily network fees for non-voting transactions

The total total fees incurred by users performing non-voting transactions is SOL 74,074. In April, the lowest amount incurred by users in a single day was 36.79 SOL seen on April 9, while the highest network fees for successful transactions without a vote were recorded on April 15 – 121 .48 SOL. Notably, April brought much better expense performance than the previous month. The daily figures remained below the lowest fee recorded in March, 105.63 SOL on March 27.

Daily active voting counts

The total number of daily active voting counts has been steadily increasing day by day. This trend continued in April. On April 1, there were 1,668 active voting accounts, a figure that increased over the month, reaching 1,752 on April 29. Overall, there were 89 additional accounts during the month.

DeFi performance

Market share and total value locked (TVL)

Solana maintained fifth place among the major chains, but with a plummeting market share. The channel had a market share of 3.47% as of April 1. It steadily declined to 3.16% as of April 30.

Since holding around 5% market share last December, that figure has been declining towards current numbers. For context, Solana had a market rate of 3.42% at the end of March.

The Total Value Locked (TVL) on Solana only saw significant growth in April earlier in the month. As of April 1, the TVL was $7.75 billion. The next day, it hit a monthly high of $8.18 billion. Since then, the only path was down, and on April 27 the figure was $6.34 billion, the lowest for the month.

The overall decline in total value locked on the Solana DeFi ecosystem was characteristic of its top-performing protocols. Of the top ten, only one showed upbeat TVL growth on the last day of the month — sixth-ranked Orca ($420 million in TVL), which saw an 8.45% increase over the past 30 days.

Serum, ranked fourth, saw the steepest decline over this period – shrinking by more than 55%. The TVL of the two main protocols, Solend and Marinade Finance, plunged 25% and 36% respectively.

To learn more about Solana, check out our Investing in Solana guide.

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