Back to blog
February 13, 2024 · 5 min · SQD Team

Betting on Hardware. Or why we're excited about Solana

Solana Infrastructure Ecosystem
Betting on Hardware. Or why we're excited about Solana

Key Reasons for Solana Support

Growth Metrics

Solana has experienced significant momentum, rising from #17 to top 5 on CoinMarketCap. Daily fee payers jumped from 80-100k to over 450k in December 2023, with 13.7 million in network fees paid in Q4 2023. The ecosystem now includes over 2,500 developers with a 50% three-month retention rate.

Technical Innovations

  • Token Extensions: Programmable features including confidential transfers, transfer fees, and permanent delegate controls
  • Local Fee Markets: Prevents network-wide fee spikes when individual programs reach capacity
  • Compressed NFTs: Enable issuing millions of NFTs for under $200 using Merkle tree compression
  • New Clients: Firedancer (supporting 1M+ TPS) and Syndica launching in 2024

Notable Ecosystem Projects

The Solana ecosystem includes successful applications such as:

  • Helium: Decentralized wireless coverage
  • Phantom Wallet: 2.7+ million users
  • Pyth Network: Real-time pricing data
  • Solana Pay: Shopify integration for crypto payments

Leadership and Philosophy

Founder Anatoly Yakovenko’s background in distributed systems at Qualcomm and Dropbox informs Solana’s approach prioritizing hardware scaling over layer-2 fragmentation. This philosophy bets on Moore’s Law continuing to drive hardware improvements, allowing a single high-performance chain to scale vertically rather than splitting across multiple layers.

Want to learn more about SQD?