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Solana: A Quick Evaluation Of How The Blockchain Performed In Q3 This Year

The crypto bear market that began in May has hurt Solana just as much as the rest of the market. CoinGecko reported a massive 16.4 percent increase, and the price of SOL is now at $32.27 at the time of writing.

Messari’s most recent quarter on quarter performance evaluation of the Solana network provided illumination into the L1’s inner workings, thus it’s possible that this is the case.

Despite a generally pessimistic market, the study highlighted very encouraging performance for the token in the third quarter. However, Q3 was a rough quarter for Solana, like it was for most cryptocurrencies, and this could have an impact on the data Messari reported.

In general, Solana’s tenacity is demonstrated by the fact that it is still expanding its network and implementing its growth strategy.

Solana Network Activity Up

Messari reports that there was an increase in network activity at SOL. The daily average number of transactions that do not involve a vote increased by nearly 70 percent from 20.544 million in the second quarter.

Chart: Messari

In addition, the number of transactions processed per second (TPS) increased by over 40.4% from Q2’s 2,310 TPS.

It’s important to note, though, that transaction fees have been going down. For Solana, transaction fees have been falling steadily since the end of 2021, the research claims.

From $0.0005 to $0.0003, this represents a 41.9% drop, making Solana more appealing to developers who seek to build dApps on a low-fee L1 chain with rapid performance.

However, when network fees drop, revenue declines as well. Solana continues to endure a gradual reduction in quarterly revenue since Q4 2021.

Chart: Messari

Sustaining Long-Term Stability

Solana concluded the second quarter with quarterly sales of $6.45 million, whereas the network ended the third quarter with a meager quarterly revenue of $4.832 million.

Solana also saw expansion in the network’s NFT sector. In the third quarter, there was a 19.3% increase in the number of newly issued NFTs. However, this is counterbalanced by a reduction in both NFT buyers and sellers.

On the basis of the quantitative and qualitative information supplied by Messari, Solana’s future remains bright. Messari underlined the emergence of the core user base that will sustain SOL’s long-term stability in light of earlier network issues.

DeFi in Solana continues to thrive despite a reduction in staking yield and a continuing decline in TVL data. Despite the recent increase in SOL’s price, investors should remain cautious, as deteriorating metrics may affect the network’s future performance.

SOL market cap at $11.8 billion on the weekend chart | Featured image from Selvan B – Unsplash, Chart: TradingView.com

Disclaimer: The analysis represents the author’s personal knowledge and should not be construed as investment advice.

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Flow Rolls Out Blockchain Tools As Social Dominance, Coin Price Seen Rising

Anyone who want their protocol to be widely used in the realms of DeFi and dApps will need robust development tools. And that’s exactly what L1 blockchain Flow accomplished not long ago, as reported on their company’s official Twitter page.

In a blog post from October 18, developer community DZone provided a comprehensive explanation of the tools.

Their recent show of strength can be directly linked to this change.

This Metric May Have Some Issues

Data collected recently indicates that there has been an upswing in the number of blocks developed for Flow on the chain. To see people making use of the resources made available to them and creating dApps on top of Flow is a promising indication.

Investors and traders may take this as a positive sign.

As of this writing, however, the value of their native token has plummeted by a stunning 17.49% over a period of 16 days.

Weekly, biweekly, and monthly reductions in value have also been recorded by Coingecko.

Back in October 17 and 18, FLOW tried to rally but was rejected at $1.580. The CMF for FLOW, however, indicates that buyers are in command.

Given the latest on-chain advancements of Flow, investors and traders may be in for a longer route.

Will Flow Continue Downstream Or Ascend?

Although Chaikin’s money flow indicator favors bulls, negative RSI and momentum readings nullify this advantage.

We anticipate FLOW to decline below the 78.60 percent Fibonacci retracement level, now located at $1.345, given that the token is already subject to intense selling pressure.

Previous price action was consistent with a flag and pole bearish formation, which will impede any near-term gains. At present, the token is testing the lower half of its trading range, which currently sits at $1,406.

With the token’s present bearish momentum, we can expect it to reach a descent as low as the 100 Fibonacci retracement level ($1.222).

However, similar to what was stated previously, the recent upswing in development activity is a strong indicator that things will remain stable for investors over the long term.

Eventually, demand for FLOW will increase as the network’s blockchain grows and as developers add more and more tools for greater connectivity between the blockchain and decentralized applications (dApps).

In the upcoming weeks, this may serve as a spark for a rally. Meanwhile, Flow investors may also buy the dip to generate a short-term price increase.

FLOW total market cap at $1.45 billion on the daily chart | Featured image from The Market Periodical, Chart: TradingView.com

Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.