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Solana (SOL) has emerged as one of the best performing altcoins for the first quarter of this year, according to a recent performance metric shared by Messari, a crypto analytics platform. Per the Messari report, Solana saw its market cap rebound in tandem with the general market, and the market cap rebounded by more than 118% when compared to the same quarter last year.
The growth in the Solana market cap is a reflection of the price surge the protocol recorded in the quarter. Solana is hitting an encompassing growth stride. One of the key metrics is 68.7% growth in SOL fees.
Additionally, one of these metrics is the growth of Liquid Staking Derivatives (LSD) on the protocol. Per the Messari report, Marinade Finance and Lido Finance took center stage in this regard. Solana also showcased it has plans for the future with crucial ecosystem events, including the Grizzlython, which saw hundreds of participants.
Lastly, Solana recorded massive growth in its total number of validators, which soared by 18.9% quarter-on-quarter (QoQ). This metric signaled that the network progressed toward a more decentralized state.
Solana and its challenges
Despite the fact that Solana achieved a number of positive milestones in the course of the first quarter, the successful Layer 1 network still has some obstacles that keep setting it back.
Per the Messari report, the regular network outage that Solana is known for also resurfaced in the first quarter. Precisely on Feb. 21 when the v1.14 upgrade was unleashed, Solana witnessed a temporary outage.
Many core backers were almost losing faith in Solana following the collapse of FTX Derivatives Exchange, which it has a close association with. However, the protocol has recorded massive growth that has largely kept hope alive for its future.
Alex Dovbnya
Denys Serhiichuk
Tomiwabold Olajide
