- Jito collected large amounts of daily fees, surpassing a vast majority of DeFi protocols.
- The Solana ecosystem continued to see growth as activity on the network soared.
Solana [SOL] has been able to attract numerous users to its ecosystem over the last few months. Primarily, this growth in activity has been initiated by memecoins being attracted to the network.
Jito shows growth
However, other elements of the Solana ecosystem have also seen growth over the last few days. One of them was the Jito protocol.
At press time, Jito was generating $1.5 million in daily fees, surpassing all but a few DeFi protocols. For comparison, Lido collected $2.58 million and Uniswap collected $2.09 million in fees over the past 24 hours.
Jito’s success has several potential implications for Solana. Firstly, it demonstrates the growing DeFi landscape on Solana.
Jito’s ability to compete with established DeFi giants like Uniswap and Lido showcases Solana’s ecosystem’s potential to create highly competitive dApps.
This could attract more developers and users to the platform, further accelerating DeFi growth within the Solana ecosystem.
Secondly, Jito’s high fees indicate a healthy level of network activity on Solana. This activity could translate to increased network security and potentially higher value for SOL in the near future.
However, a large part of Jito’s fees are derived from MEV (maximum extractable value), which can sometimes lead to negative user experiences like sandwich attacks.
Solana will need to find ways to mitigate these potential drawbacks to ensure sustainable growth. Overall, Jito’s performance is a positive sign for Solana.
Source: X
In terms of overall activity on the Solana network, there was a massive uptick observed. The number of daily transactions occurring on the network grew from 17 million to 28 million over the last week.
Coupled with that, the number of daily active addresses on the network grew from 1 million to 1.5 million during the same period.
Source: Artemis
State of SOL
At press time, SOL was trading at $174.67 and its price had grown by 3.80%Â in the last 24 hours.
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The CMF (Chaikin Money Flow) had surged significantly during the same period, indicating that the money flowing into SOL had surged.
However, the RSI (Relative Strength Index) had reached into the overbought territory, which could suggest a correction could be on SOL’s way in the future.
Source: Trading View