Since this August was all about layer one, layer two and NFT, we thought we’d look at some of those. Strap in and get ready to discover SOLANA, CARDANO, MATIC and Axie Infinity.
Solana is a “base layer” blockchain optimizing for scalability. The native token, SOL, has been designed to do two things:
- Secure the Network through staking and earn rewards for doing so.
- Pay for fees to use the network or use smart contracts It’s very much akin to Ethereum in what it wants to achieve, but it’s much faster and cheaper than Ethereum is now.
Solana is very well funded and has managed to raise $335.8 million since 2018. The ICO in 2021 was led by Polychain and Andreessen Horowitz.
Why is Solana whitelisted as an investable asset for Autopilot?
We generally like “Layer one” (base layer) smart-contract platform blockchains because, as they are general purpose computing platforms, they help unleash other people’s creativity. And while Ethereum is the most adopted to date, the speed and price of transactions today is horrible. Also, there is probably room for more than one since there has never been only one of anything.
With a good team recognized by many and a habit of delivering on the roadmap, SOL has always looked like a good asset for the Autopilot’s allowed universe. If that was not reason enough, we particularly like seeing how the SOL team collaborates with other chains (Terra(LUNA), USDC, REN, Ethereum with Wormhole,...), as we think cross-chain collaboration is key to success.
Solana was added to the list of Tokens we like in late 2020 and to the list of tokens we like on March 8 2021. The A.I almost immediately took a sizable position (15.3% at the end of April 2021), moved it to 20% in May 2021 and has kept it around that level since then.
SOL Market Commentary for Aug 2021
Layer 1 blockchains going for higher throughput and competing with ETH tend to get a boost in bull markets due to the fact that ETH gets highly congested and people begin to look elsewhere. It’s undoubtedly the case that, right now, Ethereum is congested and expensive; and competing Layer 1 blockchains have been doing pretty well.
Historically, these types of projects tend to fare less well or die altogether when things calm down. But then again, history is pretty short in Crypto. Solana thus far seems to have had a very good launch period and has certainly picked up pace since November. Solana has been successful with its partnership efforts and seems to be progressing well towards the “multiple blockchains that talk together" future.
Adoption indicators for Solana
As it’s still a relatively young project and doesn’t have the developer adoption of Ethereum, it’s hard to find metrics beyond the basic ones. But here are some things we have been able to glean: Recently, their followers on Twitter grew to 500K They got 100 project submissions for their second hackathon (February 2021) and 350 for the second one in May 2021. This is what the Solana Ecosystem looked like in March 2021 (source: Solanians)