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The Solana ecosystem has been of great interest to developers and investors lately. Not only is the native SOL token gaining momentum, but several projects on this blockchain have completed financing rounds. So there is much to be expected in this ecosystem in the coming months.
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The continued success of Solana
In a world where major public blockchains are either too slow or suffer from high transaction fees, a new solution needs to be found. Efficiency and speed are two crucial aspects when it comes to bringing blockchain into the mainstream. Unfortunately, neither Bitcoin nor Ethereum currently fit into this bill, so alternative blockchains can throw their hats in the ring. Solana is one of those competitors who, while still in beta, has proven extremely attractive.
Despite a recent network outage that lasted over 17 hours, developers are still keen to develop applications for the Solana ecosystem. The unforeseen network problem occurred when users pushed the blockchain past 400,000 transactions per second. In theory, it can handle up to 750,000 TPS, although it seems some tweaking is needed. Nevertheless, Solana is up and running again with the help of the Validator Community and the services have been resumed.
The unexpected outage has some impact on projects being created and running on Solana. However, the mainnet is still in beta and problems may arise. However, such a technical problem is unlikely to deter investors from getting involved in emerging projects. Several companies have been attracting funds lately, and their associated tokens are on the move.
The established Solana projects
So far, two projects have stood out in this ecosystem. Solana is a potent blockchain that can serve many use cases, from decentralized funding to non-fungible tokens and everything in between.
Solrise Finance, a project that provides undetected solutions to the Solana ecosystem, raised $ 3.4 million in funding last July. DeFi will make the fund management and investment protocol more accessible to the investor public. In addition, users can create their own funds for exposure across the Solana ecosystem. Fund managers will never own investor money, and investors can get in and out of positions as they see fit. SLRS, the native utility token, has seen a 147.2% increase over the past month, confirming that this project is justified.
The other “big” project on Solana is Serum. The decentralized exchange and the ecosystem are created with the help of the Solana Foundation and offer a central limit order book in the chain and a matching engine. The project completed a $ 20 million seed round in July 2020 that included ten investors. Over the past year, the value of the SRM token – used to reduce trading fees and staking – saw its price rise 426%. A strong performance as decentralized exchanges are gaining momentum.
Upcoming projects secure financing
Since more and more developers want to build on Solana, there are opportunities for investors to participate in such ventures at an early stage. Several emerging concepts recently secured funding, suggesting investors are seeing the benefit of building on the Solana ecosystem.
DeFi Land, a decentralized finance and gaming project, has secured an investment of $ 4.1 million to bring a new DeFi “game” to market. By gamifying the concept of decentralized finance, more people can experience this new paradigm of financial services and products. Over 40 investors have participated in the funding round for this farming simulation game. Additionally, offering educational solutions for those looking to explore alternative financial solutions can bring more people to the DeFi group.
In an industry where decentralization is critical, it can be difficult to raise sufficient liquidity for DeFi and decentralized trading purposes. Cyclos, a focused liquidity market maker built on top of Solana, aims to solve this problem. The private and public funding round resulted in an investment of $ 2.1 million. Cyclos aims to build the first automated market maker with concentrated liquidity on the blockchain. This will benefit Serum and possibly DeFi projects coming into the Solana ecosystem.
A few days ago, SolRazr secured start-up funding of $ 1.5 million. SolRazr will help projects raise capital efficiently and involve investors as a venture platform at a fraction of the cost. It’s not just a launchpad as the team will provide various developer tools that will help anyone develop new products and services on the Solana blockchain. Ultimately, SolRazr aims to become the fundraising and developer platform for every project in the Solana ecosystem.
With so many projects successfully funding themselves to build on Solana, the excitement continues to grow. The three most recent projects listed above secured all investments before releasing their native tokens. These tokens can offer investors another opportunity to capitalize on the success of these projects.
Those who invested in Serum and Solrise early on have reaped the rewards. It is plausible that the projects that have secured funding in the past few months could be similarly successful once their tokens hit the market. Their success will not depend on token sales and the money made from them as they have the financial backing of VCs and other parties to build their ecosystem.