Institutional Funding for Solana DApps Hits $173 Million in Q3, Marking a 54% Increase From the Prior Quarter

Institutional funding in Solana-based blockchain applications saw a resurgence in the third quarter of 2024, with Solana’s decentralized applications (DApps) garnering $173 million across 29 funding rounds.

This represents a 54% increase from the preceding quarter, indicating a renewed interest in the Solana ecosystem despite a 37% drop in the number of funding rounds, as reported by Messari.

The report indicates that this influx of investment marks the highest level of funding for Solana projects since Q2 2022.

Investor Confidence Boosted by Solana’s Increasing Profitability

A significant factor enhancing investor confidence is the rising profitability of Solana.

On October 28, Solana even outperformed Ethereum in daily fee revenue, generating $2.54 million compared to Ethereum’s $2.07 million.

The report emphasizes that Solana’s scaling strategy, which prioritizes increasing transaction throughput and reducing fees on a single layer, has established it as an “Ethereum killer.”

This approach contrasts with Ethereum’s dependence on layer-2 solutions for scalability improvements.

The third quarter also witnessed a substantial rise in Solana’s fee-related metrics.

The average number of daily fee payers reached 1.9 million, marking an impressive 109% increase quarter-over-quarter, while new fee payers surged by 430% to 1.3 million.

However, the network’s daily transaction volume, excluding voting-related activities, fell by 12% to 62 million transactions.

The average transaction fee increased by 6% to 0.00015 SOL (approximately $0.023), while the median transaction fee saw a 19% decrease.

By the end of the quarter, Solana ranked third among blockchains in terms of tokenized treasury assets, holding $123 million, behind Stellar’s $422 million and Ethereum’s $1.6 billion.

The network’s tokenized treasury figures are anticipated to grow further, particularly with the participation of significant financial entities.

𝐒𝐨𝐥𝐚𝐧𝐚 𝐢𝐬 𝐜𝐨𝐦𝐢𝐧𝐠 𝐭𝐨 𝐌𝐞𝐭𝐚𝐝𝐚𝐩𝐩, bringing speed, lower fees, and endless opportunities to snipe, trade, and profit like never before.#Metadapp #Solana pic.twitter.com/tiAO8VH4Rq

— Metadapp.com (@MetadappHQ) October 28, 2024

Franklin Templeton, a leading asset management firm, intends to launch a money market fund on Solana, while Societe Generale plans to extend its euro-denominated stablecoin to the Solana blockchain.

Currently valued at $37 million on Ethereum, this stablecoin initiative could strengthen Solana’s position in the swiftly evolving blockchain finance sector.

Solana Introduces New Seeker Smartphone

In September, Solana officially launched its new smartphone, called “Seeker,” which the company claims represents a significant advancement in Web3 mobile technology.

Priced at approximately half the cost of its predecessor, Seeker aims to attract a wider user base with improved features that extend beyond just memecoin enthusiasts.

A key feature of Seeker is its enhanced DApp store, designed to provide developers with a platform for quickly launching new applications.

Additionally, the hardware upgrades in the new model are also aimed at appealing to consumers.

The original Saga faced criticism for its technical shortcomings compared to mainstream devices such as the iPhone or Google Pixel.

Now, Seeker is expected to feature a higher-quality display, improved cameras, and a better battery, making it “lighter, brighter, and better” than its predecessor.

In other developments, Travala, a cryptocurrency-based travel booking platform, has broadened its payment options to include major tokens from the Solana blockchain.

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