Solana has been struggling to build up the necessary momentum to break above $150, but that has not deterred the developers from entering the ecosystem.
In fact, the network has seen strong development activity so far this month.
Solana Developers Press Forward
According to the latest findings by Santiment, as of the first week of October, Solana’s notable GitHub events had risen by 10.7%, indicating strong developer engagement.
This upward trend suggests that its ecosystem is actively working on enhancing its infrastructure and features. Trailing behind its development activity are Arbitrum and Avalanche, which have also seen development growth, with a 5.2% increase in GitHub activity.
Solana and its ecosystem were closely linked to the now-defunct crypto exchange FTX, and the fallout from those connections – operational setbacks, financial losses, and reputational damage – triggered a significant selloff of the SOL token. This downturn compounded existing concerns around the network’s history of outages and bugs, leading many in the market to lose faith in the project.
However, according to a recent report by digital asset banking group Sygnum, the continued “dedication” of Solana’s developers was pivotal in the token’s recovery.
As such, Solana also appears to have substantially outperformed another rival – Ethereum – since the beginning of 2023.
Sygnum noted that even conventional financial institutions seem to prioritize Solana’s high scalability over Ethereum’s superior security. The bank added in its report that if a trend develops in which major traditional financial entities prefer Solana for tokenization and stablecoin issuance instead of Ethereum, it could significantly benefit the blockchain, thereby greatly enhancing its potential to rival Ethereum.
Solana May Be Undervalued Compared to Ethereum
In a separate analysis, VanEck’s research department, MarketVector, recently highlighted that Solana outperforms Ethereum by a large margin in areas like transaction volume, daily active users, and transaction fees.
According to MarketVector’s analysis, SOL’s current price may be undervalued compared to ETH. The report’s author Martin Leinweber went on to suggest that if Solana “continues to outperform in transaction volume and user engagement,” its market cap could potentially reach 50% of Ethereum’s. If this scenario unfolds, SOL could rise to $330, considering Ethereum’s current price of $2,620 and a market cap of $315 billion.
