Solana Overtakes Ethereum To Become Leading Ecosystem For Developers

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As a seasoned crypto investor with years of experience under my belt, I’ve witnessed the ebb and flow of the digital currency market. The rise of Solana over Ethereum as the preferred choice for new developers this year is nothing short of remarkable. Having been through the 2017 bull run and the subsequent bear market, I can attest that this shift signifies a significant turning point in the industry.

In a significant development, Solana has surpassed Ethereum as the preferred platform for new developers in 2023, marking the end of Ethereum’s eight-year reign in this specific category which it had held since 2016.

Solana Becomes Preferred Choice Over Ethereum

2024 Developer Report by Electric Capital indicates that Solana is currently leading as the preferred ecosystem for new blockchain developers. This is a significant shift since 2016, being the first time any other top layer 1 network has exceeded Ethereum in attracting new developers. It’s estimated that approximately 7,625 developers have contributed to projects on Solana this year.

According to Electric Capital’s report, Solana emerged as the most rapidly expanding large development ecosystem on a yearly basis, witnessing an impressive 83% increase in monthly active developers. Meanwhile, Internet Computer (ICP) and Base attracted new developers at rates of 75% and 50% annual growth respectively.

In July 2024, Solana outpaced Ethereum to claim the position of the most preferred ecosystem for new developers worldwide. Leading the charge in Asia, it also held the top spot among developer communities in India. In the US, UK, and Canada, it ranked second, while maintaining the second-largest global presence across all continents.

Due to this expansion, the SOL ecosystem emerged as a leader in low-cost use cases, handling approximately 81% of all decentralized exchange (DEX) transactions and 64% of all NFT minting transactions across all blockchains. In 2024 alone, it is said that over 1.7 million distinct wallets were actively transacting on the Solana network, which is seven times higher than the volume on the next largest chain.

2024 saw a significant surge in DeFi activities on the Solana network, outpacing Ethereum in terms of on-chain settlement volume. This network processed approximately $574 billion in transactions through decentralized exchanges (DEXes) during that year. Moreover, Solana emerged as the fastest-growing ecosystem outside of Ethereum, with the Total Value Locked (TVL) increasing dramatically from 3% to 25% of the total on-chain capital.

This programmer is optimistic about the future of the network, and Bitwise Asset Manager shares this bullish perspective for Solana. They believe that Solana’s growth will persist through 2025. Furthermore, Bitwise predicts that significant projects may migrate to the SOL ecosystem, enhancing its influence in meme coins.

Leading The Way In DEX Volume

Due to Solana’s bustling Decentralized Finance (DeFi) environment, it surpassed Ethereum in terms of DEX (Decentralized Exchange) trading volume on several occasions. This high volume is largely attributed to Solana’s active meme coin market, as investors have been drawn to invest in the meme coins operating on its network.

At present, DeFiLlama statistics indicate that Solana is dominating the scene, both over the past 24 hours and the last week. In just the past day, it has registered a Decentralized Exchange (DEX) volume of approximately $4.13 billion, significantly more than Ethereum’s $3.17 billion. Over the course of the last seven days, Solana has recorded an impressive DEX volume of about $30.70 billion, contrasting with Ethereum’s $25.97 billion.

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2024-12-13 00:50