1: Intro/Credits
🧵I came across this deep dive on Solana (SOL) from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5117683, and it’s packed with insights!
From its lightning-fast transactions to its growing ecosystem, Solana is redefining scalability and efficiency.
Let’s break down Solana’s tech, market structure, and why it’s a top contender in the blockchain race. 👇

3: Market Structure
📊Solana’s Market Structure: Deep Liquidity & Growing Adoption
SOL is traded on nearly all major exchanges (CEXs & DEXs).
Daily trading volume: $5.14B (Dec 2024)

Perpetual futures volume: $3B+ daily
SOL’s liquidity is comparable to ETH and BTC, with tight spreads and low transaction costs.
This makes SOL a robust market for traders and investors. 💹

4: Tokenomics
💰Solana’s Tokenomics: A Balanced Approach
Initial supply: 500M SOL
Current supply: 590M SOL (Dec 2024)
Inflation model: Starts at 8%, decreases by 15% annually, stabilizes at 1.5% long-term.
Staking SOL secures the network and earns rewards, aligning incentives for validators and delegators.
This model ensures network security and sustainability. 🔒

5: Solana vs. Bitcoin & Ethereum:
Speed: Solana’s 65,000 TPS dwarfs Bitcoin (7 TPS) and Ethereum (12 TPS).

Fees: Solana’s median fee is 0.00064∗∗,whileETHandBTCaverage∗∗0.00064∗∗,whileETHandBTCaverage∗∗5.31 and $3.09 (Dec 2024).
Scalability: Solana’s single-layer architecture avoids the fragmentation seen in Ethereum’s Layer 2 solutions.
Solana is built for the future of decentralized apps and finance. 🌐

6: Institutional Adoption
🏦 Institutional Adoption: Solana ETPs in Europe & Brazil

21Shares, CoinShares, and VanEck offer Solana ETPs.

Total AUM: $1.41B (as of Nov 2024).
These products allow investors to gain exposure to SOL without directly holding the token.
Could a U.S. SOL ETF be next? 🤔

7: Key Takeaways
🔑 Key Takeaways:

Solana’s speed, scalability, and low fees make it a top blockchain for dApps and DeFi.

Its deep liquidity and resistance to manipulation make it a reliable asset for traders.

With growing institutional adoption, SOL is poised for long-term growth.
Solana isn’t just a blockchain—it’s a movement. 🌟

2: Solana’s Technology
⚡️Solana’s Secret Sauce: Proof of History (PoH)
Unlike Bitcoin’s PoW or Ethereum’s PoS, Solana uses PoH—a cryptographic clock that timestamps transactions.
This allows Solana to process 65,000+ transactions per second with 0.4-second finality.
For comparison:
Bitcoin: 7 TPS
Ethereum: 12 TPS
Solana is built for speed and scalability. 🚀