Only the top 8 projects on Solana generated $1.3 billion in revenue

The cryptocurrency market is notorious for its unpredictable volatility, where projects emerge and disappear in the blink of an eye. However, in the midst of that rough sea, Solana is rising as a rare bright spot.

What made Solana so attractive? The answer lies in the ecosystem of protocols that are working effectively on this platform, especially the 8 names that stand out with huge revenues.

Specifically, in the last 30 days alone, the top 8 protocols on Solana (all with trading tokens on the market) have collectively generated more than $100 million in revenue.

If calculated on a full-year scale, the revenue of these eight projects could amount to $1.3 billion. For ease of visualization, let's compare the $1.3 billion annual revenue of Solana protocols with some well-known companies:

• Nintendo: This “giant” of the Japanese gaming industry reported revenues of 1.6 trillion yen (about $11.5 billion) in fiscal year 2023. The revenue of the protocols on Solana is equivalent to more than 10% of Nintendo's revenue.
• X (Twitter): This social network recorded $5.1 billion in revenue in 2022. The revenue of the protocols on Solana is equivalent to about 25% of the revenue of X (Twitter).
• Lyft: This ride-hailing service company made $4.1 billion in revenue in 2022. The revenue of the protocols on Solana is equivalent to more than 30% of Lyft's revenue.

Clearly, web3 is no longer a far-fetched concept, but is generating really significant economic value. Solana, with its robust protocol ecosystem, is challenging even the big guys in the traditional field.

Besides technology and community factors, another “secret weapon” is the token acquisition strategy of the protocols themselves. In other words, the protocols themselves are “sharks” silently collecting their own tokens.

Take for example JUP and RAY, two protocols that stand out among the 8 names mentioned above. Thanks to the transaction fees collected, they can redeem tens of millions of dollars of tokens each month. This action brings many practical benefits:

• Decrease in supply, increase in value:As the amount of tokens circulating in the market decreases, the value of each token increases.
• Show confidence in the project: The protocol for self-acquisition of tokens as an affirmation of the development team's confidence in the future of the project, thereby attracting additional investor interest.

Practically proven the effectiveness of this strategy:

• RAY has acquired about 9% of the total token supply since its launch.
• MPLX also executed the strategy with 4.5% of total supply having been acquired.
• JUMP will also join the token acquisition race this month.

Thus, not only users and investors, but also the protocols themselves are playing an important role in driving token value. Strong and continuous inflows from the protocols provide solid support, helping the token price to withstand market fluctuations.

However, it should be remembered that long-term success does not only come from temporary sales. To maintain its growth momentum, Solana needs to ensure that the revenue and transaction fees of its protocols are kept stable over time. This requires the sustainable development of the entire ecosystem.

As a matter of fact, Solana is making solid progress in many ways:

• Strong growth in the number of users:Solana noted a significant increase in the number of monthly active users, indicating the growing appeal of the platform.
• Extended Project Ecosystem: The number of projects built on Solana is constantly growing, including the areas of Meme, DePin, AI, RWA,... This contributes to the diversification of the application and the attraction of more users.
• Continuous technological improvement: The Solana development team is constantly improving technology, improving the performance and scalability of the network, meeting the growing demand.

These factors suggest that Solana's revenue growth is not accidental, but the result of a comprehensive and sustainable development process. However, maintaining this growth momentum over the long term remains a challenge for the project.