The Solana Ecosystem Call: A Celebration of Growth and Innovation

The Solana ecosystem has come a long way since the inception of the monthly ecosystem calls two years ago. What started as a response to the FTX crash has evolved into a global celebration of Solana's resilience, innovation, and community strength. In this December 2024 edition, hosted by Cash Donda, the call covered a wide range of topics, from DeFi dominance to AI integration, highlighting the incredible progress and potential of the Solana blockchain.

Wins of the Month: Solana's Unstoppable Momentum

The ecosystem call kicked off with an impressive list of wins, showcasing Solana's remarkable growth and adoption over the past month. These achievements underscore the network's robustness and the increasing demand for its services.

Record-Breaking Economic Value

Solana reached an all-time high in its real economic value, with base fees, priority fees, and MEV tips totaling a staggering $409 million in November. This represents a significant increase from October's previous record of $158 million. Cash Donda emphasized the importance of this metric:

"People pay fees for things that they want to use, they don't pay fees for things that are hyped on podcasts or just by VCs or whatever else. Solana is a network that people actually want to use, and they've never wanted to use it more than right now."

This surge in economic value demonstrates that Solana is not just a speculative asset but a blockchain with real, tangible utility.

DEX Dominance

For the first time, Solana's decentralized exchanges (DEXs) surpassed all other chains in volume. This milestone highlights the growing preference for on-chain trading and the efficiency of Solana's network. The host stressed the importance of this achievement:

"I believe in the power of being fully on-chain. No disrespect to the centralized exchanges, but on-chain is the future, on-chain is where things can be the safest, where you can have full control ultimately. If it's not your keys, it's not your crypto, on-chain is where it's happening, Solana is for the on-chain homies."

Network Resilience

Despite the increased activity, Solana's network remained stable and efficient. The network processed a peak of 65,000 transactions per second while maintaining ultra-low fees of 0.002 cents per transaction. This performance is a testament to the robust validator community and the continuous improvements made to the Solana blockchain.

All-Time High Chain GDP

Solana's chain GDP, which represents the revenue generated by Solana DApps and protocols, reached an unprecedented $360 million in November. This figure translates to approximately $12 million per day being earned by Solana protocols, fully on-chain. Cash Donda highlighted the significance of this achievement:

"For so many years in crypto, the only way to make money, the only way for protocols to be sustainable was to release tokens, and the tokens maybe did something that they probably did not, and they would kinda cash out and leave. Not the case on Solana. On Solana, you have real businesses being built that are generating real substantial fees."

TVL Milestones

Five Solana protocols have now crossed the $2 billion mark in Total Value Locked (TVL). These protocols include Jito, Kamino, Raydium, Marinade, and Jupiter. While acknowledging that TVL can be a somewhat flawed metric, the host emphasized its importance as a starting point for capturing attention and demonstrating trust in the ecosystem.

The Rise of Mobile Apps on Solana

The ecosystem call highlighted the growing trend of mobile applications built on Solana. Several new apps were showcased, including:

1. Vector by Tensor: A mobile trading experience for NFTs and tokens.
2. Birdeye: A trading data aggregator app.
3. Worlds: A group chat app for building communities.
4. Solflare: A mobile crypto app powered by account abstraction.

The increasing number of mobile apps demonstrates Solana's push towards mainstream adoption and accessibility.

Verifiable Builds: Enhancing Trust and Transparency

Solana has introduced verifiable builds, a significant step towards improving trust and integrity within the ecosystem. This feature allows users and developers to prove whether the on-chain program matches the source code. Cash Donda explained the importance of this development:

"It's a big step forward for just trust and the integrity of the apps that we're using. Hopefully, it's a great step forward for everything around kind of the open-source nature and can help push towards more open source on Solana, because I think that's something that we all desperately want."

Solana.com: A One-Stop Information Hub

The launch of solana.com marks a significant milestone in making Solana more accessible to newcomers and veterans alike. This comprehensive platform provides key metrics about the network, information on protocols, news, and media, all in one place. It serves as a valuable resource for anyone looking to understand and engage with the Solana ecosystem.

Colosseum Accelerator: Nurturing the Next Generation of Solana Projects

The ecosystem call announced that 13 startups have been selected for the Colosseum accelerator program. This initiative, run by the team behind the Solana global hackathon, received over 1,400 submissions. The selected teams will receive mentorship, guidance, and fundraising assistance. Notably, eight of the chosen teams came from the Superteam community, highlighting the strength of Solana's grassroots ecosystem.

Superteam Expansion: South Korea Joins the Global Network

In an exciting development for the Solana community, Superteam South Korea was announced. This expansion is part of a broader strategy to dominate the APAC region in 2025. The new chapter will be led by Scotley and Jay Hunt from Ignite Capital, bringing their expertise to grow Solana's presence in South Korea.

Roon from Sky: Insights on Stablecoins and DeFi

A special guest on the call was Roon Christensen, co-founder of MakerDAO (now known as Sky). Roon provided valuable insights into Sky's ecosystem and its recent launch on Solana. He explained the unique value proposition of their stablecoin, USDS:

"USDS is a stablecoin worth $1, but then it also gives you some really good returns in the Sky savings rate. We recently launched in Solana with a lot of incentives that are basically delivering the Sky savings rate on Kamino and Drift and Save and a number of the Solana DEXs."

Roon highlighted that the incentives provided by USDS are generated from the collateral, making it a sustainable system that deploys into DeFi, generates yield, and delivers benefits to end-users. He also announced that the Sky savings rate was being increased to 12.5%, showcasing the competitive advantages of decentralized stablecoins in tapping into the best rates across both traditional finance and crypto.

Solana DeFi: A Dominant Force in the Crypto Landscape

The call emphasized Solana's growing dominance in the DeFi space. With five protocols now boasting over $2 billion in Total Value Locked (TVL), Solana's DeFi ecosystem is flourishing. Cash Donda highlighted several up-and-coming projects that are pushing the boundaries of what's possible in decentralized finance:

Ranger: The Perpetuals Aggregator

Ranger is aiming to do for perpetuals what Jupiter did for spot trading. By aggregating perpetual markets across the Solana ecosystem, Ranger is making it easier for traders to access the best prices and liquidity. The host emphasized the uniqueness of this project:

"To my knowledge, there is not a good Perps aggregator anywhere else. This is an only possible on Solana kind of situation."

Exponent: Fixed-Rate DeFi Markets

Exponent is tackling the volatility issue in DeFi yields by offering fixed-rate markets. This innovation is particularly valuable for businesses and large holders who need predictable returns for financial planning. Cash Donda explained:

"Exponent makes that a little bit easier because they gave you fixed yield. So you know exactly what you're going to get over time. That certainty is actually really valuable for company treasuries and people that need to do a lot of cashflow predictions."

Asgard: God Mode for Solana DeFi

Asgard is building tools to enhance the DeFi experience on Solana. Their features include alerts for positions nearing liquidation, debt swaps to optimize interest payments, and collateral swaps to maximize returns. The host described it as "God mode for Solana DeFi," highlighting its potential to make DeFi more user-friendly and efficient.

Loop Finance: Innovative Borrowing and Lending

Loop Finance is introducing a novel approach to borrowing and lending on Solana. Their platform allows users to borrow against any asset at the best rates, using an order book-based model. Cash Donda noted the uniqueness of this approach:

"This is tech that is genuinely unique where you can borrow and you can have any asset. Let's say you have with and you want to borrow whatever XYZ kind of asset, you can do it with this kind of order book based model that's going to get you the best rates."

Decentralized Science (DeSci) on Solana

The ecosystem call highlighted Solana's growing role in the emerging field of decentralized science (DeSci). Several projects were showcased that are leveraging blockchain technology to advance scientific research and funding:

Pump.Science: Tokenized Longevity Research

Pump.Science is applying the meme coin model to fund longevity research. Token holders can participate in and benefit from experiments aimed at extending lifespan. This novel approach to scientific funding demonstrates the creative potential of blockchain technology in advancing important research.

Valley DAO: Climate Solutions through Synthetic Biology

Valley DAO is creating a platform to fund projects focused on solving climate problems through synthetic biology. By leveraging the Solana blockchain, they aim to make it easier for researchers to access funding, especially those who may face barriers in traditional academic or governmental funding systems.

Bio Protocol: Early-Stage Science Funding

Set to launch in Q4, Bio Protocol aims to direct capital and talent to early-stage science projects. This initiative could potentially accelerate the pace of scientific discovery by providing a more efficient funding mechanism for promising research.

Qutis: Anonymized Health Data for Research

Qutis, known for their health tracking ring, is integrating with Solana to allow users to anonymize and monetize their health data. This approach could provide researchers with valuable, large-scale datasets while preserving individual privacy. Cash Donda emphasized the importance of this development:

"The data is actually a very critical part of decentralized science. You need the ability to collect data at a global scale in an anonymous way. And that is what Qutis is helping to do as well."

The Role of Meme Coins in the Solana Ecosystem

The ecosystem call addressed the controversial topic of meme coins, presenting a balanced view of their role in the crypto ecosystem. Cash Donda argued that meme coins serve several important functions:

1. Bringing new users into crypto
2. Stress-testing blockchain networks
3. Powering decentralized content studios
4. Providing fun and engagement for the community

He emphasized that meme coins help drive adoption and improve network resilience:

"Earlier, I talked about a win that the Solana network has stayed up and performed beautifully over the last few months, especially over the last month. And that is largely because we have these kinds of constant stress tests."

Solana as a Hub for AI Agents

The call highlighted Solana's emerging role as a platform for AI integration in blockchain applications. Several projects were showcased:

AI 16Z DAO and Eliza

AI 16Z DAO has created Eliza, a framework that allows large language models (LLMs) to connect with Discord and Twitter. This tool has been widely adopted by various meme coin projects, demonstrating the potential for AI integration in community engagement and token ecosystems.

VVAI-FU

VVAI-FU (waifu.fun) enables users to launch AI agents and associated tokens within seconds. This platform is lowering the barrier to entry for creating AI-powered blockchain applications.

Parallel Colony

Set to launch in Q1, Parallel Colony is a game where AI agents battle for survival based on user-provided prompts. This project showcases the potential for AI integration in blockchain gaming.

Crossmint

Crossmint has developed a framework for creating AI agents that can interact with on-chain applications. This opens up possibilities for AI-driven trading, borrowing, lending, and other DeFi activities.

The Solana AI Hackathon

In light of the growing interest in AI integration, the ecosystem call announced an upcoming Solana AI Hackathon. This 15-day global, online event will offer $125,000 in prizes and aims to foster innovation at the intersection of AI and blockchain technology.

Understanding Network Fees on Solana

The call provided an educational segment on understanding Solana's fee structure, breaking it down into three components:

1. Base fees: The minimal fees required for transaction processing.
2. Priority fees: Optional fees that allow for faster transaction processing.
3. MEV tips: Rewards for validators who protect users from front-running and other MEV-related issues.

This explanation helps users better understand the economic model of the Solana network and the value provided by validators.

A Bittersweet Announcement: Cash Donda's Transition

The ecosystem call concluded with a significant announcement from Cash Donda. After three years of building and leading Superteam, he announced that he would be stepping down as Sherpa at the end of the year:

"On a personal note, I will be stepping down as Sherpa of Superteam at the end of the year. I will be becoming Sherpa Emeritus, which is a fancy way of saying that I will no longer be the Sherpa."

Cash expressed his gratitude for the experience and the growth of Superteam, which has expanded from a small Slack group to a global community with thousands of members. He reassured the community that he would remain involved in the Solana ecosystem, albeit in a different capacity.

This announcement marks the end of an era for the Solana ecosystem calls, as this was the last one hosted by Cash Donda. However, he emphasized that the Solana community is stronger than ever and will continue to thrive:

"The Solana community is strong. We have IRL people all around the world hosting meetups, making things happen. I know that the Solana community is only going to get stronger from here."

Conclusion: A Bright Future for Solana

The December 2024 Solana Ecosystem Call painted a picture of a thriving, innovative blockchain ecosystem. From record-breaking economic activity to groundbreaking developments in DeFi, AI integration, and decentralized science, Solana continues to push the boundaries of what's possible in the world of blockchain technology.

As the community bids farewell to Cash Donda's leadership of the ecosystem calls, there's a palpable sense of excitement for what the future holds. With a robust network, a growing suite of applications, and a passionate community of builders and users, Solana is well-positioned to continue its trajectory of growth and innovation in the years to come.

The ecosystem call serves as a testament to the resilience and creativity of the Solana community. From overcoming challenges to seizing new opportunities, the Solana ecosystem has consistently demonstrated its ability to adapt and thrive. As we look to the future, it's clear that Solana will continue to play a pivotal role in shaping the landscape of decentralized technology and finance.

Facts + Figures

• Solana's real economic value reached an all-time high of $409 million in November, up from $158 million in October.
• Solana's DEXs surpassed all other chains in volume for the first time.
• The network processed a peak of 65,000 transactions per second while maintaining fees at 0.002 cents per transaction.
• Solana's chain GDP hit $360 million in November, averaging $12 million per day.
• Five Solana protocols have crossed $2 billion in Total Value Locked (TVL).
• 13 startups were selected for the Colosseum accelerator program out of over 1,400 submissions.
• Superteam South Korea was announced as part of Solana's expansion strategy.
• Sky's stablecoin USDS offers a savings rate of 12.5% on Solana.
• The Solana AI Hackathon was announced, offering $125,000 in prizes.
• Cash Donda announced his departure as Sherpa of Superteam after three years.
• Solana's TVL grew from $200 million to $9 billion over two years, a 4,400% increase.
• True TPS on Solana increased from 300 to 1,300, a 333% improvement.
• Hackathon submissions for Solana global hackathons increased by 84%.
• Drift's TVL grew from $1 million to $1 billion since first appearing on the ecosystem call.
• Jito's TVL increased from $4 million to $3.3 billion, an 82,000% rise.
• Kamino's TVL grew from $1 million to $2.2 billion.
• Bonk's market cap went from near zero to $3.5 billion.
• Superteam has expanded to 13 chapters globally, with $9 million in GDP raised and $40 million in VC funding secured.
• Over 200,000 people have attended Superteam events, and the community has grown to 150,000 Twitter followers.

Questions Answered

What is the current state of Solana's economic value?

Solana's real economic value reached an all-time high of $409 million in November 2024. This figure represents the total of base fees, priority fees, and MEV tips, indicating a significant increase in network usage and demand for Solana's services. The growth from October's $158 million to November's $409 million demonstrates the rapidly expanding adoption of Solana's blockchain.

How does Solana's DeFi ecosystem compare to other blockchains?

Solana's DeFi ecosystem has shown remarkable growth and is now dominant in several aspects. For the first time, Solana's decentralized exchanges (DEXs) surpassed all other chains in volume. Additionally, five Solana protocols have crossed the $2 billion mark in Total Value Locked (TVL). These milestones indicate that Solana is becoming a preferred platform for DeFi activities, offering high speeds and low transaction costs.

What new developments are happening in AI integration on Solana?

Solana is emerging as a hub for AI integration in blockchain applications. Projects like AI 16Z DAO's Eliza framework allow large language models to connect with social platforms. VVAI-FU enables rapid deployment of AI agents and tokens, while Parallel Colony is creating AI-driven gaming experiences. Crossmint has developed a framework for AI agents to interact with on-chain applications. These developments showcase Solana's potential in combining AI with blockchain technology.

How is Solana contributing to decentralized science (DeSci)?

Solana is fostering several projects in the decentralized science space. Pump.Science is applying the meme coin model to fund longevity research. Valley DAO is creating a platform to fund climate solutions through synthetic biology. Bio Protocol aims to direct capital to early-stage science projects. Qutis is integrating with Solana to allow users to anonymize and monetize their health data for research purposes. These initiatives demonstrate Solana's role in advancing scientific research through blockchain technology.

What changes are happening in the Solana ecosystem leadership?

A significant change announced during the ecosystem call was Cash Donda's decision to step down as Sherpa of Superteam at the end of 2024. After three years of building and leading Superteam, Cash will transition to a Sherpa Emeritus role. This marks the end of an era for the Solana ecosystem calls, as it was the last one hosted by Cash Donda. However, he emphasized that he will remain involved in the Solana ecosystem and that the community is stronger than ever.

How has Solana's performance improved over the past two years?

Solana has seen significant improvements in various metrics over the past two years. The network's TVL grew from $200 million to $9 billion, a 4,400% increase. True TPS (transactions per second) increased from 300 to 1,300, a 333% improvement. The network can now handle peak loads of 65,000 TPS while maintaining low fees of 0.002 cents per transaction. These improvements demonstrate Solana's scalability and efficiency gains.

What role do meme coins play in the Solana ecosystem?

Meme coins serve several important functions in the Solana ecosystem, according to the ecosystem call. They help bring new users into crypto, stress-test the network, power decentralized content studios, and provide fun and engagement for the community. While controversial, meme coins have contributed to network resilience and adoption, with projects like Bonk seeing significant growth from near-zero market cap to $3.5 billion.

How is Solana making blockchain more accessible to mobile users?

Solana is pushing for mainstream adoption through the development of mobile applications. New apps showcased include Vector by Tensor for NFT and token trading, Birdeye for trading data aggregation, Worlds for community building, and Solflare for mobile crypto management powered by account abstraction. These apps demonstrate Solana's commitment to making blockchain technology more accessible and user-friendly on mobile devices.

What is the significance of verifiable builds on Solana?

Solana has introduced verifiable builds, which allow users and developers to prove whether the on-chain program matches the source code. This feature enhances trust and integrity within the ecosystem by providing transparency and verification capabilities. It's a significant step towards improving open-source practices on Solana and ensuring the security and reliability of applications built on the network.

How is Superteam expanding globally?

Superteam, a key community-building initiative in the Solana ecosystem, has seen significant global expansion. The announcement of Superteam South Korea marks a strategic move into the APAC region. Over the past two years, Superteam has grown to 13 chapters worldwide, raised $9 million in GDP, secured $40 million in VC funding, and attracted over 200,000 attendees to its events. This expansion demonstrates the growing global interest and participation in the Solana ecosystem.