Solana Ecosystem Call: September 2024 Highlights

The September 2024 Solana Ecosystem Call, hosted by Cash Donda, brought together the global Solana community to celebrate recent wins, explore new projects, and gain insights from Solana co-founder Raj Gokal. This monthly gathering serves as a vital touchpoint for builders, investors, and enthusiasts to stay updated on the rapid developments within the Solana ecosystem.

A Global Community Gathering

The call kicked off with an impressive statistic: 80 watch parties were organized worldwide, spanning multiple continents. This global participation underscores the widespread adoption and interest in Solana's technology. Cash Donda, the host, emphasized the importance of community engagement, encouraging viewers to interact through live chats and participate in various interactive segments throughout the call.

Wins of the Month: August 2024

The ecosystem call began by highlighting significant achievements and milestones reached in August 2024. These wins demonstrate Solana's growing influence across various sectors of the blockchain industry:

1. Major exchanges Binance, Bitget, and Bybit announced plans to launch Solana Liquid Staking Tokens (LSTs), a move that is expected to increase network decentralization and economic security.

2. Solana partnered with Finternet, a vision for a future financial system comprising interconnected autonomous financial systems powered by public blockchains. This collaboration was demonstrated using Solana's technology, showcasing its potential in reshaping global finance.

3. USDe, a new stablecoin by Ethena Labs, went live on Solana, further expanding the stablecoin offerings on the network.

4. XNET, a decentralized physical infrastructure network (DePIN) project, announced its move to Solana, reinforcing the blockchain's position as a preferred platform for DePIN applications.

5. Anchorage Digital's Portco wallet added support for Solana SPL tokens, increasing institutional access to Solana-based assets.

6. Dawn, a project building decentralized broadband infrastructure, chose Solana as its blockchain foundation.

7. Helium's Carrier Offload feature entered beta, allowing other carriers to utilize Helium's decentralized network.

8. Drift Protocol launched prediction markets on Solana, expanding the range of DeFi products available on the network.

9. Ore Protocol released its v2 upgrade, enhancing its proof-of-work mining capabilities on Solana.

10. Magic Eden, a leading NFT marketplace, launched its wallet on Android and iOS, improving user access to Solana-based NFTs.

These wins collectively paint a picture of Solana's expanding ecosystem, with developments spanning DeFi, NFTs, infrastructure, and real-world applications.

Overrated or Underrated: Insights from Raj Gokal

One of the highlights of the call was the "Overrated or Underrated" segment featuring Solana co-founder Raj Gokal. This section provided valuable insights into various aspects of the Solana ecosystem and the broader crypto landscape.

ZK Compression

Raj Gokal deemed ZK compression as "underrated," emphasizing its significant impact on reducing on-chain storage costs. He stated:

"It's a huge step forward, drastically reduces on-chain storage costs, like 99%. You can make like a hundred compressed token accounts for 0.000 for Sol, which is down from 0.2. So it's like a 5,000 extra reduction."

Gokal compared the potential impact of ZK compression on tokens and airdrops to that of compressed NFTs, which he described as having "melted everyone's face." He anticipates that ZK compression will enable new business models and product innovations within the Solana ecosystem.

Celebrity Coins

When asked about celebrity coins on Solana, Gokal labeled them as "overrated." While acknowledging their role in bringing mainstream adoption and innovative fan engagement models, he expressed concern that the hype around celebrity coins overshadows other important developments in the ecosystem:

"The mindshare is so high of celebrity coins and meme coins that I think it outstrips the value in terms of bringing more mainstream adoption to the ecosystem. There are lots of innovative fan engagement and tokenization models that get pushed forward. I think those get kind of downplayed when people talk about celebrity coins and meme coins on Solana."

L2s on Solana

Gokal also considered Layer 2 solutions (L2s) on Solana to be "overrated." He argued that the term "L2" is being used more as a marketing tool rather than addressing a genuine scalability need:

"If there weren't a few teams that used the word L2s to kind of position themselves and get more mindshare in a very crypto in a very noisy crypto market, nobody would be talking about these things."

He emphasized that Solana's base layer already provides consumer-grade scalability, unlike Ethereum, where L2s emerged as a necessity due to scalability limitations. Gokal sees Solana's "network extensions" as customization tools rather than scaling solutions, maintaining the importance of a seamless user experience.

Ethereum L2s Using Solana Virtual Machine (SVM)

Regarding Ethereum L2s that utilize the Solana Virtual Machine (SVM), Gokal expressed a nuanced view. While he acknowledged the potential benefits of expanding SVM adoption and accessing Ethereum's liquidity and user base, he ultimately labeled them as "overrated." He cited challenges these projects might face in terms of cultural alignment with the Ethereum ecosystem and technical limitations:

"I think they're gonna be facing a lot of competition from established Ethereum L2s and rollups that are much more aligned. What you see in Ethereum is if you don't fall within this very clear circle of you're not part of the religion. And you're gonna be fighting against people that really align with the religion."

The Solana Foundation

In a moment of candid reflection, Gokal assessed the Solana Foundation as "underrated," particularly in its current form. He highlighted the foundation's lean structure, high-performance culture, and focus on tasks that only it can perform effectively:

"These days, what I've seen is it is running very lean. It's a very high performance culture and it's very selfless and low ego, which is hard to produce in a non-profits with foundation that's supporting an ecosystem that is hundreds of times larger than itself."

Gokal emphasized the foundation's crucial role in facilitating relationships with major players like Visa, Stripe, and PayPal, contributing to Solana's enterprise adoption. He also praised the foundation's efforts in coordinating events like Breakpoint, which serve as important gathering points for the ecosystem.

Definitely Not Financial Advice: Ecosystem Overview

The call included a comprehensive overview of the Solana ecosystem, branded as "Definitely Not Financial Advice" to emphasize its informational nature. This section highlighted various aspects of Solana's growth and development:

Real Businesses on Solana

Cash Donda emphasized that Solana is home to real, revenue-generating businesses, countering the misconception that crypto projects are solely focused on quick token launches and speculation. He revealed that in August 2024 alone, Solana projects generated over $50 million in revenue, marking a 170% increase from January of the same year.

More than 20 Solana startups are reportedly earning over $100,000 per month, putting them on track for annual revenues exceeding $1.2 million. The standout example is pump.fund, a meme coin launchpad that has generated $100 million in fees within its first six months of operation.

Stablecoin Adoption

The call highlighted significant stablecoin adoption on Solana, with $2 billion worth of stablecoins flowing onto the network in 2024. This influx is attributed to Solana's fast, cheap, and user-friendly infrastructure, making it an attractive platform for stablecoin transactions and applications.

Several projects were highlighted as leveraging this stablecoin-friendly environment:

1. Sphere: A cross-border payment solution processing over $10 million in daily volume.
2. Sling: Enabling cross-border payments in over 50 countries, addressing the multi-billion dollar remittance industry.
3. Decaf: A global on-chain bank allowing users worldwide to access US bank accounts.

DeFi Innovations

The DeFi sector on Solana continues to show impressive growth and innovation. Jupiter, described as the "everything exchange," is averaging 1.5 to 2 million swaps per day in 2024. Kamino, a DeFi protocol, recently crossed $1 billion in Total Value Locked (TVL) and released its V2 whitepaper.

Raydium, the largest decentralized exchange on Solana by volume, has generated $600 million in fees for its liquidity providers. The ecosystem boasts over 60 protocols with more than $1 million in TVL, indicating a robust and diverse DeFi landscape.

Yield Aggregation

The call spotlighted several yield aggregation projects on Solana:

1. Tulip: Offering DeFi savings vaults that automatically allocate funds for optimal yields.
2. Carrot: Provides a token that rebalances every 5-10 minutes to find the best yield opportunities.
3. Hubble: An established player offering various yield aggregation strategies.

These projects showcase Solana's capacity to support sophisticated DeFi products that leverage the network's speed and low transaction costs.

DePIN Market

The Decentralized Physical Infrastructure Network (DePIN) market on Solana has reached a market cap of $4.1 billion. Notable projects in this space include:

1. Hivemapper: A decentralized alternative to Google Maps that has mapped 15 million unique kilometers, covering 25% of global roads.
2. Treking: A new project focused on tracking and trading renewable energy.
3. Saga: A long-standing Solana project offering cloud-based gaming solutions.

Real World Assets (RWA)

The call emphasized Solana's growing role in bringing real-world assets on-chain, particularly focusing on niche or long-tail assets that are typically difficult to access:

1. DeVin: Tokenizing wine as an asset class.
2. Elements: Bringing mineral rights and oil/gas royalties on-chain.
3. Meadow Well: Enabling fractional real estate investments with as little as $100.

These projects demonstrate Solana's potential to democratize access to diverse asset classes traditionally reserved for institutional investors.

Community Engagement and Future Events

The ecosystem call concluded with announcements of upcoming events and community initiatives:

1. Solana Labs Startup Incubator: Applications are open for the next cohort, following the success of previous participants like Sanctum and Saga.

2. Super Team Founders Villa: A post-Breakpoint event for founders and builders in the Solana ecosystem.

3. Port of Miami: A new coworking space for Solana developers and entrepreneurs.

4. Breakpoint 2024: The annual Solana conference, expected to be the largest yet.

5. Global Build Stations: Super Team is organizing build stations worldwide to facilitate in-person collaboration among Solana developers.

These events underscore the Solana ecosystem's commitment to fostering community, supporting developers, and driving innovation.

Conclusion: A Thriving Ecosystem

The September 2024 Solana Ecosystem Call painted a picture of a vibrant, growing blockchain ecosystem. From major partnerships and protocol upgrades to innovative DeFi products and real-world asset integration, Solana continues to push the boundaries of what's possible in the blockchain space.

Raj Gokal's insights provided valuable perspective on the ecosystem's direction, emphasizing the importance of user experience, real utility, and sustainable growth over hype. The call's comprehensive overview of projects across various sectors demonstrated Solana's versatility and its potential to drive mainstream blockchain adoption.

As the ecosystem continues to expand, with more developers, enterprises, and users joining the network, Solana appears well-positioned to play a significant role in shaping the future of decentralized technologies and finance.

Facts + Figures

• 80 watch parties were organized worldwide for the September 2024 Solana Ecosystem Call.

• Solana projects generated over $50 million in revenue in August 2024, a 170% increase from January of the same year.

• More than 20 Solana startups are earning over $100,000 per month.

• Pump.fund, a meme coin launchpad, generated $100 million in fees within its first six months.

• $2 billion worth of stablecoins flowed onto Solana in 2024.

• Sphere, a cross-border payment solution on Solana, is processing over $10 million in daily volume.

• Jupiter, a Solana-based exchange, is averaging 1.5 to 2 million swaps per day in 2024.

• Kamino, a DeFi protocol on Solana, crossed $1 billion in Total Value Locked (TVL).

• Raydium, the largest DEX on Solana, has generated $600 million in fees for its liquidity providers.

• Over 60 Solana protocols have more than $1 million in TVL.

• The DePIN market on Solana has reached a market cap of $4.1 billion.

• Hivemapper, a decentralized mapping project on Solana, has mapped 15 million unique kilometers, covering 25% of global roads.

• ZK compression on Solana reduces on-chain storage costs by 99%, allowing 100 compressed token accounts to be created for 0.000 SOL, down from 0.2 SOL.

• The Solana Foundation has dozens of employees, compared to hundreds or thousands in other L1 foundations.

• Breakpoint 2024 is expected to be the largest Solana conference to date.

Questions Answered

What are some of the major wins for Solana in August 2024?

Major wins for Solana in August 2024 include Binance, Bitget, and Bybit announcing plans to launch Solana Liquid Staking Tokens, a partnership with Finternet for future financial systems, USDe stablecoin going live on Solana, and XNET bringing their DePIN network to Solana. Additionally, Anchorage's Portco wallet added support for Solana SPL tokens, Dawn chose Solana for decentralized broadband infrastructure, and Helium's Carrier Offload entered beta on the network.

How much revenue are Solana projects generating?

Solana projects generated over $50 million in revenue in August 2024 alone, marking a 170% increase from January of the same year. More than 20 Solana startups are earning over $100,000 per month, putting them on track for annual revenues exceeding $1.2 million. The standout example is pump.fund, a meme coin launchpad that has generated $100 million in fees within its first six months of operation.

What is Raj Gokal's opinion on Layer 2 solutions (L2s) for Solana?

Raj Gokal considers L2s on Solana to be "overrated." He argues that the term "L2" is being used more as a marketing tool rather than addressing a genuine scalability need. Gokal emphasizes that Solana's base layer already provides consumer-grade scalability, unlike Ethereum where L2s emerged as a necessity due to scalability limitations. He sees Solana's "network extensions" as customization tools rather than scaling solutions, maintaining the importance of a seamless user experience.

How is Solana facilitating the integration of real-world assets (RWA) on-chain?

Solana is enabling the integration of various real-world assets on-chain, particularly focusing on niche or long-tail assets that are typically difficult to access. Examples include DeVin, which is tokenizing wine as an asset class, Elements, which is bringing mineral rights and oil/gas royalties on-chain, and Meadow Well, which enables fractional real estate investments with as little as $100. These projects demonstrate Solana's potential to democratize access to diverse asset classes traditionally reserved for institutional investors.

What is the state of DeFi on Solana as of September 2024?

The DeFi sector on Solana is showing impressive growth and innovation. Jupiter, a major exchange on Solana, is averaging 1.5 to 2 million swaps per day in 2024. Kamino, another DeFi protocol, recently crossed $1 billion in Total Value Locked (TVL). Raydium, the largest decentralized exchange on Solana by volume, has generated $600 million in fees for its liquidity providers. The ecosystem boasts over 60 protocols with more than $1 million in TVL, indicating a robust and diverse DeFi landscape. Additionally, yield aggregation projects like Tulip, Carrot, and Hubble are thriving on the network.

How is Solana contributing to the growth of the DePIN (Decentralized Physical Infrastructure Network) market?

The DePIN market on Solana has reached a significant market cap of $4.1 billion as of September 2024. Notable projects in this space include Hivemapper, a decentralized alternative to Google Maps that has mapped 15 million unique kilometers, covering 25% of global roads. Other projects like Treking, focusing on tracking and trading renewable energy, and Saga, offering cloud-based gaming solutions, demonstrate the diverse applications of DePIN on Solana. The network's fast and low-cost transactions make it particularly suitable for DePIN projects that often require frequent, small-value transactions.