Assessing the Solana Ecosystem and How Jito Will Help It Grow

• Jito has collected large amounts of daily fees, surpassing the vast majority of DeFi protocols.
• The Solana ecosystem continued to grow as activity on the network skyrocketed.

Solana (SOL) has been able to attract many users to its ecosystem in recent months. Primarily, this growth in activity was initiated by the attraction of memecoins to the network.

Jito shows growth

However, other elements of the Solana ecosystem have also seen growth in recent 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 in the last 24 hours.

Jito’s success has several potential implications for Solana. First, it demonstrates the growing DeFi landscape on Solana.

Jito’s ability to compete with established DeFi giants like Uniswap and Lido showcases the potential of Solana’s ecosystem to create highly competitive dApps.

This could attract more developers and users to the platform, further accelerating the growth of DeFi within the Solana ecosystem.

Second, Jito’s high fees indicate a healthy level of network activity on Solana. This activity could result in increased network security and potentially higher value for SOL in the near future.

However, a large portion of Jito’s fees come 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:

In terms of overall activity on the Solana network, a massive increase has been observed. The number of daily transactions made on the network increased from 17 million to 28 million over the past week.

Along with this, the number of daily active addresses on the network increased from 1 million to 1.5 million during the same period.

Source: Artemis

SOIL Condition

At press time, SOL was trading at $174.67 and its price increased by 3.80% in the last 24 hours.

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The CMF (Chaikin Money Flow) increased significantly during the same period, indicating that money flowing into SOL increased.

However, the RSI (Relative Strength Index) had reached the overbought territory, which could suggest that a correction could be underway for SOL in the future.

Source: Commercial View