Pantera believes Solana will dominate blockchain sector, compares its rise to Apple's breakthrough with macOS

A current report by Pantera Capital highlighted Solana’s (SOL) potential to grow to be a dominant participant within the blockchain ecosystem, drawing parallels between its monolithic structure and Apple’s macOS.

Authored by Normal Companion Franklin Bi, Portfolio Supervisor Cosmo Jiang, and Funding Analyst Eric Wallach, the report delves into Solana’s rising affect and its implications for the way forward for blockchain expertise.

Based on the report, the blockchain ecosystem is predicted to converge round just a few dominant platforms, pushed by developer preferences, and Solana’s built-in method is poised to seize a major share of this consolidation.

Pantera known as builders the “root” of the blockchain ecosystem, shaping crypto broadly and appearing as prospects who construct functions that drive blockspace demand. Consequently, blockchain use may converge round a small oligopoly of chains, just like Home windows, MacOS, and Linux within the desktop pc market.

Monolithic architechture

Based on Pantera, Solana’s monolithic design gives a seamless consumer expertise, quicker innovation, and enhanced safety, making it a pretty alternative for builders and end-users alike. Solana’s capabilities are enabling revolutionary functions throughout numerous sectors, from content material distribution and decentralized mapping to capital-efficient monetary markets.

Traditionally, Ethereum has been the main platform for blockchain improvement, commanding 70-80% of developer exercise. Nevertheless, Solana is quickly gaining floor, the report mentioned.

It in contrast Solana’s rise to Apple’s breakthrough in opposition to Microsoft within the early desktop pc market, highlighting its monolithic structure as a key differentiator. This method permits the community to optimize each element of its blockchain, providing vital advantages over modular blockchains like Ethereum and Cosmos.

Pantera mentioned Solana’s related method offers a seamless UX that eliminates the necessity to bridge between chains and gives quicker innovation and product upgrades. It additionally offers excessive safety because of a single-chain design just like Apple’s “tight management over its ecosystem.”

Progress throughout

Solana has seen development in different classes. Pantera famous Solana’s distinctive handle rely rose from 14,000 in October 2020 to 1.34 million as of March.

Precedence charges have grown from $100,000 month-to-month in mid-2023 to $60 million in March, signifying the “depth of demand for block area on Solana.”

Solana accounted for 85% of all new tokens on DEXs in Might, up from 50% a 12 months in the past, amid “explosive development” pushed by memecoin exercise. Pantera mentioned this can be a signal of sturdy retail utilization.

The community’s share of DEX volumes has grown from 0% in early 2021 to 24% in Might — capturing over 60% of incremental DEX quantity through the month.

In the meantime, the highest pockets on the community, Phantom, briefly rose to the highest spot in numerous iOS app retailer classes and have become essentially the most downloaded app in late Might and early June. Pantera known as this a “exceptional feat” and an indication of mainstream adoption, relating it as soon as once more to the memecoin buying and selling increase.

Solana’s complete financial worth, or transaction charges plus most extractable worth (MEV),  has surpassed 32% of the identical metric on Ethereum. The pattern has “actual financial worth seize for SOL token holders” and attracts stakers. Moreover, it would enhance decentralization and safety.

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