A look at five potential projects in the Solana ecosystem worth paying attention to in the second half

The recent negative news about cryptocurrencies has caused the market to fall into panic. The landing of short-term negative news will also be accompanied by the accumulation of market momentum. For investors, it is a good opportunity to deploy oversold potential projects now. As the two major ecosystems worth paying attention to in this round of bull market, the rapid development and money-making effect of Solana and TON have made them the focus of many investors.

Among them, the Solana ecosystem is more mature than TON, and Solana has advantages that cannot be ignored in terms of innovation and large-scale adoption. As the Ethereum ETF is approaching listing, VanEck also submitted the Solana ETF application to the SEC in June, and Solana has also begun to attract the attention of traditional capital. As Matthew Sigel, head of digital assets at VanEck, said: The combination of high throughput, low fees, strong security and a strong community atmosphere makes Solana an attractive choice for exchange-traded funds, providing investors with a versatile and innovative open source ecosystem.

Potential of Solana Ecosystem

On the technical level, the launch of Solana Blinks and Solana Actions has led to an increasing interest in Solana among developers. The launch of Solana Actions and Blinks has reduced the difficulty for users to use the Solana blockchain for on-chain activities in terms of the underlying code. This will also promote Solana to a wider range of application scenarios, including DeFi, NFT markets, games, DAO governance, RWA and other tracks, and promote more Web2 users to use Web3 blockchain technology conveniently and quickly. For projects in the Solana ecosystem, this is also an important opportunity to gain more users and adoption.

For investors, deploying the Soalan ecosystem and seizing opportunities under technological innovation and capital layout will become the focus of attention in the future. This article will sort out the projects worth paying attention to in the Solana ecosystem this year for your reference.

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Drift Protocol

Drift Protocol integrates RWA and DeFi into the protocol to provide users with diversified DeFi products and experiences. Recently, it announced in-depth cooperation with ONDO Finance, allowing USDY (notes secured by U.S. Treasury bonds and bank deposits, holders can obtain corresponding returns) and stablecoins such as Ethena-USDe and Mountain-USDM as collateral assets for traders. It is the most widely supported protocol for mainstream RWA assets on the Solana chain.
Diversified products are one of the advantages of Drift Protocol, including derivatives trading, Swap, leveraged spot, lending, etc. With the characteristics of Solana's low gas and fast confirmation, Drift Protocol provides users with extremely low fees and a trading experience comparable to CEX without affecting its own profitability.

Another core advantage is the rapid response and support for the ecosystem. Drift provides pre-market trading and fast listing channels. Hot assets in the ecosystem can be quickly listed and traded on Drift, providing investors with more trading strategies and options. Recently, it also announced support for JLP as collateral, which is the first in the same field.

Drift's TVL has rapidly increased from 117M US dollars to a maximum of 385M US dollars this year. The increase is 3.3 times, the cumulative trading volume has reached 32 billion US dollars, the trading volume in the last 24 hours is about 220 million US dollars, and the number of active users has reached 190,000.

Jupiter

Jupiter is the largest DEX aggregator on Solana. By aggregating the liquidity of multiple decentralized exchanges, it helps users automatically choose the best trading path and minimizes Swap transaction slippage and transaction fees. Its daily trading volume once exceeded Uniswap, becoming the first in the entire chain.

Solana chain's DEX has the advantages of being fast, cheap and permissionless. Jupiter also provides scheduled automated investment, cross-chain bridges, perpetual contract trading, and Launchpad to provide projects with release and online trading services.
The Jupiter team airdropped JUP tokens to 100,000+ community users at the beginning of this year, becoming the largest airdrop event on Solana. Last week, another $60 million worth of cryptocurrency was airdropped to users who actively pledged JUP and participated in DAO voting.

Kamino

Kamino is a DeFi project that provides lending and liquidity, while providing users with collateralized lending, and controls the availability of borrowed funds by using CLMM (centralized liquidity market makers). In addition, it also provides an automatic deleveraging mechanism and a "protected collateral" function, which can protect assets from the risk of borrower default. By integrating lending, liquidity, and leveraged staking into one DeFi product, users are provided with a diverse DeFi experience.
At present, you can pay attention to Kamino's second phase of airdrops. Providing stablecoins for the protocol is the most robust strategy. Among them, PYUSD (a stablecoin launched by payment giant PAYPAL) has an annualized return of up to 18.39% in Kamino, and can get 3 times the Kammino points reward.

As of early July, the TVL on the Kamino chain reached 1.06 billion US dollars, a 6.5-fold increase from 1.47 million at the beginning of the year.

Jito

Jito is a liquidity staking protocol launched in 2022. Users can obtain JitoSOL by staking SOL, and the staking income is directly accumulated in JitoSOL. Jito also provides users with the maximum extractable value function (MEV), and the income from MEV will also be allocated to JitoSOL. Relatively speaking, the income will also increase.

Currently, Jito's TVL has reached 1.59 billion US dollars, a 2.5-fold increase compared to the beginning of the year. The 24-hour protocol fee is 730,000 US dollars, the cumulative fee has reached 150 million US dollars, and the number of users has exceeded 100,000.

TipLinks

TipLinks is a lightweight wallet product whose functions coincide with the Blinks function launched by Solana on June 25. People with cryptocurrency can create a TipLink and send the link to anyone through any platform (SMS, discord, email, etc.).

Using TipLinks, you only need a Google account to handle complex crypto transactions. Clicking on a link will easily send crypto assets, even to non-crypto users. The emergence of TipLinks and Blinks technology has completely broken the barriers between Web2 and Web3. It truly seamlessly links Web2 and Web3 together, providing a seamless crypto payment experience for new crypto users. It provides a foundation for the large-scale adoption of Web3.

Conclusion

From the on-chain data, Drift Protocol has 1.7 times the number of users as Jito, with a high user base. At the same time, the daily income of the protocol is 162,000 US dollars, which is higher than Jito's 29,000 US dollars. The project products cover a wide range, including lending, spot trading, leveraged trading, contract trading, etc. in the DeFi track. Drift's integration with the Solana ecosystem is also relatively advantageous, which will bring more flexibility to Solana DeFi user assets, thereby further enhancing Drift's competitiveness.

Jito and Kamino have obtained more than 1 billion US dollars in locked positions and have become projects of capital attention. The main factor is that Jito's MEV has brought additional income to users, and jitoSOL has also become a high-proportioned pledge token in the Solana ecosystem. Kamino has many innovations in lending, and users' demand for lending has also increased relatively in the bull market.

Jupiter has achieved a higher TVL growth rate, on the one hand because of the advantage of trading quotes brought by its aggregated liquidity, and on the other hand it is mainly related to its airdrop expectations.

From the current development status, Jito and Jupiter are the projects with high capital attention on Solana. Drift Protocol has the highest growth rate of TVL by increasing the types of collateral, aggregated liquidity, and innovative combination of RWA assets and DeFi. On Solana, the combination of RWA and DeFi will have greater imagination in the bull market, while creating more value for users and adding many new features to DeFi. Therefore, Drift Protocol will also have more explosive power and development prospects.

TipLinks provides the possibility for further development of cryptocurrencies and has the potential for explosion. In the future, it remains to be seen whether it can withstand market tests in terms of security, usability and composability.

Compared to the ecology of the bull market in 2021, a number of fast-growing popular projects have emerged on Solana in this bull market, including DEX, Liquid Staking, Lending, NFT, RWA and other tracks, which have also quickly followed up, showing a booming development trend. In addition to Solana's technological innovation, its ecological projects have also shown strong appeal to funds and users, as well as potential innovation capabilities. The TVL growth rate of ecological projects is generally more than 2 times, and the number of users has reached hundreds of thousands. This also shows the innovation potential of DeFi on Solana and its growth prospects in this bull market.