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Pantera believes Solana will dominate the blockchain industry and compares its rise to Apple’s breakthrough with macOS
A recent report by Panther Capital Solana highlighted (SOL) has the potential to become a dominant player in the blockchain ecosystem, drawing parallels between its monolithic architecture and Apple’s macOS.
Written by general partner Franklin Bi, portfolio manager Cosmo Jiang and investment analyst Eric Wallach, the relationship delves into Solana’s growing influence and its implications for the future of blockchain technology.
According to the report, the blockchain ecosystem is expected to converge around a few dominant platforms, driven by developer preferences, and Solana’s integrated approach is poised to capture a significant share of this consolidation.
Pantera called developers the “root” of the blockchain ecosystem, shaping cryptocurrencies overall and acting as customers who build applications that drive demand for blockspace. As a result, blockchain use may converge around a small oligopoly of chains, similar to Windows, MacOS, and Linux in the desktop computer market.
Monolithic architecture
According to Pantera, Solana’s monolithic design offers a seamless user experience, faster innovation, and greater security, making it an attractive choice for developers and end users alike. Solana’s capabilities are enabling innovative applications in various industries, from content delivery and decentralized mapping to capital-efficient financial markets.
Historically, Ethereum has been the leading platform for blockchain development, controlling 70-80% of developer activity. However, Solana is rapidly gaining ground, the report said.
He compared Solana’s rise to Apples turned against Microsoft in the early desktop computer market, highlighting its monolithic architecture as a key differentiator. This approach allows the network to optimize every component of its blockchain, offering significant advantages over modular blockchains like Ethereum and Cosmos.
Pantera said Solana’s similar approach provides a seamless UX that eliminates the need to build bridges between chains and delivers innovation and faster product updates. It also provides high security thanks to a single-chain design similar to Apple’s “tight control over its ecosystem.”
Growth everywhere
Solana has seen growth in other categories. Pantera noted that Solana’s number of unique addresses increased from 14,000 in October 2020 to 1.34 million in March.
Priority fees grew from $100,000 per month in mid-2023 to $60 million in March, signifying “the intensity of demand for blocks of space on Solana.”
Solana accounted for 85% of all new tokens on DEXs in May, up from 50% a year ago, amid “explosive growth” driven by memecoin activity. Pantera said this is a sign of strong retail usage.
The network’s share of DEX volumes grew from 0% at the start of 2021 to 24% in May, capturing more than 60% of incremental DEX volume during the month.
Meanwhile, the most important wallet on the network, Ghost, briefly rose to the top spot in various iOS app store categories and became the most downloaded app in late May and early June. Pantera called it an “amazing feat” and a sign of mainstream adoption, once again linking it to the memecoin trading boom.
Solana’s total economic value, or transaction fees plus maximum mineable value (MEV), exceeded 32% of the same metric on Ethereum. The trend has “capture real economic value for SOL token holders” and attracts stakeholders. Furthermore, it will improve decentralization and security.