High-performanceblockchainSolana(SOL)hasgarneredattentionforsignificantinflowsfromotherblockchains,withitstotalvaluelocked(TVL)surgingasaresultoftheseinflows.Anexaminationofthedata,however,showsamorenuancedpicture,withEthereum(ETH)recovering42%ofSolana’sinflows.
AccordingtodatafromArtemisLabssharedbyDeFiReportfounderMichaelNadeau,Solanahasseensubstantialinflowsyear-to-date,with$2.36billioncomingfromEthereum,althoughETHsaw$1billionofthosefundsreturn.
Thedatashowsthatonly2.7%ofEthereum’sTVLmigratedtoSolanayear-to-date,withthesecond-largestnetworkbymarketcapitalizationseeing$6billionofnetoutflowssofarthisyear.83%ofthoseoutflows,Nadeauwrote,wenttoLayer-2networkswithinitsecosystem,wherethey“continuetodrivevaluetotheL1.”
No.Addingsomecontext(anddata)changesthestoryregardingflowstoSolanafromotherchains👇
Overthelastmonth,@baseis#1intermsofnetflows($463m).@solanais#2with$197mofnetflows.@SuiNetwork#3with$120m.
IfwezoomouttoYear-to-Date,@arbitrum…https://t.co/FXd7kqJ2YDpic.twitter.com/mqqfRnGxpc
—MichaelNadeau|TheDeFiReport(@JustDeauIt)October30,2024
Thedataalsoshowsthatoverthepastmonth,Coinbase’sLayer-2networkBaseledintermsofnetflows,with$463millionenteringthenetwork.Solanacameinsecondwith$197millionofnetflows,aheadofSui’s$120million.
Year-to-date,Ethereum’slayer-2networkshaveledintermsofnetflows,however,withArbitrumseeing$2.4billionandOptimismseeing$2.2billion.Basecomesinthird,with$1.6billionofnetflows.
Solana’srisehasneverthelessbeennotablethisyear,withitspricesignificantlyoutperformingmostotherdigitalassetstothepointthatit’snearlyovercomingBinance’sBNBtobecomethefourth-largestdigitalcurrencybymarketcapitalization.
It’sworthpointingoutthatbothcryptocurrencieshaveverydistinctsupplymechanics,eventhoughbotharegastokensusedwithintheirblockchainsthatpowertheirdecentralizedfinanceecosystems.
WhileBNBhasareal-timeburningmechanismthatwasintroducedwithBEP-95andseesaportionofthecollectedgasfeesgetburnedineachblockinabidtoreduceitstotalcirculatingsupply,Solanadoesn’thaveamaximumsupply,butratheraninflationmechanism.
Solanaisaninflationarytokenwhosesupplyincreasesatapredeterminedrate.Atlaunch,ithada500millionSOLsupplyallocatedduringthecreationofthegenesisblock—thefirstblockonablockchain.Thecurrenttotalsupplynowstandsat587millionSOL.
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