Predicting Solana’s 2024 prices amidst new network updates
- Solana has introduced a token extension program.
- Development activity soared while Solana’s TVL decreased.
As per an update on the 24th of January, developers and projects building on-chain can now access token extensions on Solana [SOL]. The token extension would enable developers to access certain use cases.
Some of these use cases are not available on public blockchains.
A look at the revelation showed that the use cases include governance for Real World Assets (RWAs), and stablecoin development.
For context, token extension is a program that allows the creation of fungible and non-fungible tokens on the core protocol level.
In total, Solana introduced 13 token extensions.
Could rising development foster adoption?
The project’s CEO and co-founder Anatoly Yakovenko also commented on the development, saying that,
“We’re already seeing the potential to build using token extensions via deployments from some of the most recognizable names in crypto.”
AMBCrypto checked if Solana’s development activity was in tune with its introduced feature. According to Santiment’s data, the development activity increased from 1.35 to 1.88 in the last five days.
Source: Santiment
Development activity measures the work done on public GitHub repositories. If it increases, it means developers are actively deploying new features.
However, when the metric falls, it implies that commitment to polishing the network has decreased.
For SOL’s price, it gained 3.80% since the development became public. As shown above, the press time value of the token was $87.87.
Furthermore, the token extension feature could bring about the introduction of new cryptocurrencies built on Solana.
Over the last year, the blockchain emerged as one of the go-to places to launch tokens. This brought about the likes of Bonk [BONK], Myro [MYRO], and dogwifhat [WIF].
So, in the coming months, market participants might experience a new wave of cryptocurrencies backed by the Solana blockchain.
Besides potential token deployment, Solana also plans to onboard firms. Recall that the project had partnered with payment giant Visa. It also had some integration with Google and Shopify.
Head of Payments at the Solana Foundation, Sheraz Shere, noted in a press statement that the project could do more. He expressed,
“With token extensions, we are expanding what is possible for enterprise adoption of blockchain by natively enabling features that matter to large regulated enterprises.”
TVL falls, but it’s just the new year
Meanwhile, Solana’s Total Value Locked (TVL) has decreased by 21.30% in the last 30 days. According to DeFiLlama, the TVL was $1.34 billion at press time.
The TVL tracks the value of assets locked or staked in a protocol. When the TVL increases, market participants perceive a project to be trustworthy. However, a decrease suggests otherwise.
Source: DeFiLlama
Despite the drawdown, Solana has established itself as one of the projects capable of longevity in the market. One of the reasons could be linked to its state between 2022 and 2023.
How much are 1,10,100 SOLs worth today?
In 2022, the blockchain experienced a massive all-around decline.
However, 2023 proved to be worthwhile. In this new year, further development would tell if Solana would keep the momentum it brought in from the last.
