- Jito collected large amounts of daily fees, surpassing a vast majority of DeFi protocols.
- The Solana ecosystem continued to grow as activity on the network skyrocketed.
Solana [SOL] has been able to attract countless users to its ecosystem in recent months. This growth in activity has primarily been initiated by memecoins being attracted to the network.
Jito shows growth
However, other elements of the Solana ecosystem have also grown in recent days. One of these was the Jito Protocol.
At the time of writing, Jito was generating $1.5 million in daily fees, surpassing all but a few DeFi protocols. By comparison, Lido raised $2.58 million in the last 24 hours and Uniswap raised $2.09 million in fees.
Jito’s success has several possible consequences for Solana. First, it showcases the growing DeFi landscape on Solana.
Jito’s ability to compete with established DeFi giants such as Uniswap and Lido shows the potential of Solana’s ecosystem to create highly competitive dApps.
This could attract more developers and users to the platform, further accelerating the growth of DeFi within the Solana ecosystem.
Second, Jito’s high fees indicate a healthy level of network activity on Solana. This activity could translate into greater network security and potentially higher value for SOL in the near future.
However, a large portion of Jito’s fees are derived from MEV (maximum extractable value), which can sometimes lead to negative user experiences such as sandwich attacks.
Solana will have to find ways to mitigate these potential disadvantages to ensure sustainable growth. Overall, Jito’s performance is a positive sign for Solana.
Source:
In terms of overall activity on the Solana network, a huge increase was observed. The number of daily transactions on the network has grown from 17 million to 28 million in the past week.
In combination with this, the number of daily active addresses on the network grew from 1 million to 1.5 million in the same period.
Source: Artemis
State SOL
At the time of writing, SOL was trading at $174.67 and its price had risen 3.80% in the past 24 hours.
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The CMF (Chaikin Money Flow) had increased significantly over the same period, indicating that the flow of money into SOL had increased dramatically.
However, the RSI (Relative Strength Index) had reached overbought territory, which could indicate that a correction could be on the way for SOL in the future.
Source: trading view