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Information about Solana (SOL)
Solana is a blockchain platform that supports high-performance decentralized applications and smart contracts. The Solana platform is designed to facilitate the creation of decentralized applications (DApps) to make decentralized finance accessible on a larger scale. Solana improves scalability by using the Proof of History consensus method, combined with the underlying blockchain’s Proof of Stake consensus method.
SOL is a token that operates on the Solana blockchain platform. The SOL token has the typical uses of a platform token such as:
News
Solana apps secured 46% of all revenues from major chains in March, reflecting their leadership in the decentralized market despite a slowdown in meme activity.
Although revenues reached 146 million USD, Solana’s expenses for network operation remain high, exceeding 4.5 billion USD per month, indicating that fee income is insufficient for complete operational funding.
The price of SOL has shown resilience, recovering to 134.44 USD after falling below the 100 USD mark, indicating a stable interest in Solana’s ecosystem.
Galaxy Research has proposed a new model called MESA to improve Solana’s governance, addressing the challenge of agreeing on inflation reduction.
MESA allows validators to vote on multiple deflation rate options rather than a simple yes or no, calculating a weighted average for the final rate.
Currently, Solana’s inflation rate stands at around 4.6%, starting at 8% and decreasing over time, with the goal of stabilizing SOL’s supply through this proposal.
Solana led the decentralized exchange (DEX) market with a staggering 52% trading volume in Q1 2025, driven by a surge of memecoins. Despite this impressive figure, Ethereum remains a formidable competitor, showcasing its strong economic activity with a substantial app capital.
Ethereum, holding $203 billion in app capital, is regaining its position as a stable foundation for real economic activities, surpassing Solana significantly. Despite recent market fluctuations affecting both platforms, Ethereum continues to prove its enduring value in the cryptocurrency space.
Solana’s DEX trading volume has recently soared past 15 billion USD, putting it ahead of Ethereum and BNB Chain, marking a significant shift in the decentralized trading landscape.
Positive sentiments surround Solana despite concerns over transaction failures. The rise in decentralized finance activities has attracted significant liquidity, suggesting continued growth.
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