Solana Looks to Rebuild Amid Challenges

Developer Community Growth, Technical Innovations, and a Shift Out of Beta Mode Mark the Path Forward for the Decentralized Platform

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Solana will continue to generate debate around its name, as to whether it can hold its own in the upper echelons in terms of capitalization and compete with Ethereum in terms of the broader range of functions of a smart contracts platform.

A large number of developers

Research recently presented by Electric Capital revealed that Solana’s developer community has grown by 83% in just one year. Specifically, the survey showed that more than 2,000 developers are creating on Solana every month. This great performance ranks the network in second place in the rankings, only behind Ethereum which is by far the leader.

This performance takes on even greater significance when considering how difficult a year 2022 was for Solana.

solana graphic

The outages

One of the main problems Solana faced in 2022 was the outages it experienced on several occasions, which kept it inactive for quite some time.

The outages were caused for a variety of reasons, either due to a large increase in transactions, technical errors, or security breaches.

This situation damaged Solana’s image and shook the public’s confidence in whether it is a secure and reliable platform. Fatefully, a portion of investors sold their holdings in SOL, resulting in a drop in its price.

The link to FTX

Moreover, last summer, FTX founder and CEO Sam Bankman-Fried had praised Solana, calling it one of the best projects in the space. Subsequently, when FTX collapsed, rumors began to swirl about Solana’s reliance on FTX and how viable it was now. This was another of the reasons that pushed SOL’s price down further.

The Solana Foundation, in an attempt to reassure the public, released data on the financial relationship between Solana and FTX and revealed that $50.5 million worth of SOLs remain “locked” on the platform and will be “locked” until 2028.

Departure of leading NFTs

Another blow to Solana was the fact that two of the leading NFTs collections, DeGods and y00ts, announced their decision to leave Solana and move to Ethereum and Polygon.

Unsurprisingly, this backdrop called into question the stability of the platform and the long-term prospects of the decentralized exchanges based on it, such as Serum.

The new era

Despite the problems of 2022, Solana’s team remains optimistic and makes these sentiments public at every opportunity. This optimism also stems from the fact that Firedance, by creating a new validation client, promises to reduce the risk of network outages, ensuring smooth operation for the entire Solana ecosystem.

However, the tests that have been carried out have demonstrated the ability to process 0.6 million transactions per second, which is admittedly impressive. However, we reiterate that this performance was recorded in the testing process, not in the real world.

Furthermore, another point of note is the fact that Solana will – at last – come out of the Beta mode it has been in since its inception.

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