Solana’s Impact on Africa’s Crypto Market: A Transformation in Perspective

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Solana, with its profound impact on the crypto market’s growth in Africa, represents a pivotal shift in the continent’s technological landscape.

An executive from a major exchange highlights that the adoption of any technology is deeply connected to the strength of its community. Solana exemplifies this with its expanding base of supporters across Africa, showcasing how a strong community can drive technological adoption and maturity.

The Resilient Growth of Solana in Africa’s Crypto Market

As anticipated, Oladotun Wilfred Akangbe, Marketing Director of Flincap, a prominent platform for crypto OTC in Africa, highlighted the incredible growth and maturity of the cryptocurrency sector on the continent. He particularly emphasised the resilience of Solana and the dedicated efforts of its community in Africa.

Akangbe pointed out that the cryptocurrency industry is steadily maturing, showing its ability to face and overcome challenges that once might have caused significant market downturns. Despite obstacles such as regulatory issues involving Binance and its founder, Changpeng Zhao, who pleaded guilty in November 2023 to violating U.S. money laundering laws, the sector continues to thrive.

Solana’s Community-Driven Success in Africa: A Turning Point for Cryptocurrency Growth

According to Akangbe, the strength and adoption of any technology largely depend on the vigour of its community. Solana has brilliantly demonstrated this dynamic with its growing base of supporters in Africa. The constant focus of crypto projects on solving community problems, particularly in remittances and international payments, indicates positive growth year after year.

The resilience and progress of Solana in Africa’s crypto market represent a turning point in the continent’s technological landscape, showcasing the immense potential and future growth of the cryptocurrency sector.

Solana’s Growing Influence in Africa

The Solana Foundation has been very active in Africa, organising meet-ups, hackathons, and educational workshops to get many Africans involved in the Solana ecosystem. These activities help build a strong community and encourage the use of blockchain technology in practical ways.

Groups around the world support Solana, and in Nigeria, the Solana Allstars team has become one of the most active groups promoting Web3 adoption. Akangbe mentioned that these efforts help people focus on the real benefits of Solana projects instead of just price movements.

Recently, there has been talk about the approval of a spot exchange-traded fund (ETF) for Solana (SOL) in the United States. Bloomberg analyst Eric Balchunas said this could happen if there is a change in the US administration and the leadership of the Securities and Exchange Commission.

Several companies have applied to create a spot Solana ETF. On June 28, 21 Shares applied to the SEC, just one day after VanEck, another ETF issuer.

Overall, Solana’s initiatives in Africa and the potential for a Solana ETF show the growing importance and adoption of blockchain technology in the region.

Solana’s Impressive Growth in the Second Quarter of 2024

In the second quarter of 2024, Solana saw remarkable growth in several key areas. A report by Coin98 Analytics highlights this impressive progress.

Soaring Transaction Fees and Revenues

Solana’s transaction fees and revenues surged to over $26 million, an astonishing increase of 42 times compared to the previous year. This shows how much more people are using the platform in Africa.

Huge Trading Volume

The blockchain recorded a trading volume of $292 billion, growing seven times more than in the same period in 2023. This indicates a significant rise in trading activities on Solana.

Massive Number of Transactions

During this period, Solana handled an incredible 15.3 billion transactions. The number of daily active addresses on the network exceeded 900,000, a 499% increase from the previous year.

DeFi and Total Value Locked (TVL)

The total value locked (TVL) on Solana’s blockchain has grown by over 1000% year-on-year, showing strong growth in decentralised finance (DeFi) activities.

NFT Boom

Solana’s NFT market is booming, with over 98 million new NFTs minted, a 54-fold increase compared to the previous year. The platform saw 1.4 million unique NFT buyers and 678,000 sellers in the second quarter, highlighting the vibrant activity in the NFT market.

Price and Market Capitalisation

After a brief decline, the price of SOL regained momentum, rising by over 3% in the last week to around $140.57. Solana’s market capitalization remains above $65 billion, making it the fifth largest cryptocurrency.

 Technical Analysis Insights

The daily chart analysis of Solana shows mixed signals:

– MACD Histogram: Indicates a slight bullish trend.
– Chaikin Money Flow (CMF): Shows an increase, suggesting more capital flowing into the market.
– Relative Strength Index (RSI): Trending downwards, indicating potential bearish pressures.

Solana’s impressive performance in Q2 2024 underscores its growing importance in the cryptocurrency world. With increasing transactions, a booming NFT market, and rising DeFi activities, Solana is set for an exciting future.

Reference: CryptoEconomist