Trader Lark Davis says five fundamental factors are driving the massive rise of the Solana smart contract platform.

In one Video Davis recognizes the commitment of the developers who made SOL a success.

“Builders are really showing up… A blockchain needs an infrastructure. Otherwise you’re just a ghost town. Solana is definitely not a ghost town. There are tons of built-in apps that you can actually use now, today …

For example Port Finance (PORT) – one of Aave’s competitors appears on Solana. There’s also Mercurial Finance – a stablecoin swap protocol similar to Ethereum’s Curve Finance. And Radium (RAY), just like Uniswap (UNI) ”.

Davis said the rise of NFT also helped Solana grow.

“NFT has become a huge trend lately. Solana also has a lot of NFTs. That’s part of what drove demand for SOL because people wanted to buy NFT on Solana at Solana prices. “

Davis said Solana’s financial health is also helping fuel the rise of the token. The company raised $ 314 million in June to strengthen its DeFi ecosystem.

“One reason why so many developers are currently committed to the SOL ecosystem – they are making money. You get funding. You get a ton of investment … $ 314 million plus the support of a major crypto exchange like FTX. It’s like more money than God. “

Davis says big financial institutions are also starting to take an interest in Solana.

“Institutional funds flow into Solana. Osprey announced a Solana fund two weeks ago. They aren’t the only big players flocking to Solana right now. “

Davis is also studying the Total Value Locked (TVL) in the Solana ecosystem, which has exploded to over $ 5 billion. He predicts that Solana’s TVL will continue to grow as market participants seek to provide liquidity and generate returns without paying hundreds of dollars in transaction fees.

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Annie

According to Dailyhodl

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