Home / Solana / Solana Firedancer Makes DeFi Speed Similar to CEX: SOL up 15% Due to Network Improvements
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Solana Firedancer Makes DeFi Speed Similar to CEX: SOL up 15% Due to Network Improvements

Published July 3, 2023 3:03 PM
Teuta Franjkovic
Published July 3, 2023 3:03 PM
Key Takeaways
  • The new validator client for Solana is intended to raise the status of the cryptocurrency in terms of DeFi
  • By reducing latency times, Firedancer can enable faster transactions
  • SOL price and DEX volumes rose, but TVL continued to drop

Solana (SOL) has gone through its fair share of ups and downs over the past few years but has now decided to increase its speed and become similar to CEXs in that manner. The network has experienced numerous outages, and more recently, SOL’s categorization as a security by the SEC caused more problems.

New Client to Improve Things on DeFi Front

By introducing a new validator client, Firedancer, a standalone validation client, built by Jump, Solana (SOL) is prepared to further improve its decentralized finance (DeFi) ecosystem, especially the speed of transactions. Stakeholders and industry professionals are taking notice of this noteworthy achievement because they think it might greatly strengthen Solana’s position in the competitive DeFi market.

Solana supporters are full of hope and eagerly anticipate the possible advantages that this novel validator client might provide, greatly enhancing the platform’s possibilities for the future.

A recent analysis of the SOL price highlighted an intriguing trend in the DeFi ecosystem of Solana. Firedancer hopefully could have the potential to revolutionize the DeFi market by improving critical platform components.

Reduced latency significantly bridges the gap between centralized exchanges and their decentralized counterparts, which is Firedancer’s main goal.

Credit: Messari

Firedancer has the ability to provide better speed regarding transaction processing within the Solana network by successfully reducing latency periods. This revolutionary improvement not only offers a better user experience but also has the potential to draw more users to the network.

Firedancer’s supported enhanced effectiveness and streamlined operations are anticipated to improve the usability and scalability of decentralized apps built on Solana, opening the door for better transaction speed, overall significant growth, and advancement within the ecosystem.

As of this writing, the price of SOL  is $19.14, up 1.37% over the previous day, according to data from CoinMarketCap. In addition, the cryptocurrency has seen a spectacular increase of 13.21% over the last seven days, showing both the general market mood and the potential effects of game-changing technologies like Firedancer on the trajectory of Solana in the future.

Despite Market Turbulence and Regulatory Challenges, Solana Still Resilient

Solana has emerged as one of the top gainers in a mixed early trading session among the top 10 non-stablecoin cryptocurrencies by market capitalization. A succession of pessimistic indicators arose last week, including Cardinal, a Solana-based non-fungible token (NFT) platform, closing its doors due to “macroeconomic challenges.” The surge is a welcome breath of fresh air.

Revolut Delists Solana: Hurt For the Crypto Growth

Cardano (ADA), Polygon (MATIC), and Solana (SOL) have recently been removed from Revolut’s US client list  in accordance with the major cryptocurrency exchanges in the nation.

Few days ago, the impacted Revolut users received an email with the news. The digital bank will not allow users from the US to buy ADA, MATIC, or SOL. Any remaining tokens in users’ accounts , once it has stopped providing support for the delisted tokens, will be immediately sold.

When the SEC identified popular altcoins in lawsuits against Binance and Coinbase last month, trouble started to arise. They included ADA, MATIC, and SOL, all of which were quickly removed from crypto exchanges like Robinhood, eToro, and Bakkt.

These companies have highlighted doubts about the legality of dozens of coins that have been labeled securities in the SEC’s complaints.

Prices of the impacted tokens have fallen as a result of being removed from key exchanges.

When it was revealed that Robinhood was selling off approximately $26 million worth of SOL, the stock of Solana came into peril.

Solana has, however, shown resiliency and has been able to maintain a strong trajectory despite the regulatory obstacles and commercial setbacks.

After things with delisting happened, the Solana Foundation’s head of policy, Amira Valliani decided to finally “address the elephant in the room.” “SOL is not a security,” she stated.

Solana also went out with the tweet saying :

“The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the digital assets space.”

The co-founder of Ethereum, Vitalik Buterin, has expressed his displeasure with how American officials are going after cryptocurrency projects, especially Solana, his blockchain’s greatest competitor.

Ethereum Could Be Layer-2 for SOL, Says Solana Co-Founder

On the other hand, according to Anatoly Yakovenko, the co-founder of Solana Labs, the notion of using Ethereum (ETH) as a layer-2 for the Solana (SOL) blockchain is not as crazy as it may sound, despite some restrictions and potential hazards.

Yakovenko examined how such an integration would develop in a series of tweets  on Sunday, saying that the technical partnership is “probably more likely than you might think at first glance.”

Also, on the more positive side, only few days ago, support for Solana decentralized apps on Android and iOS was announced by the crypto-native Brave browser. “You can now connect and interact with apps like MagicEden, Orca_so, and JupiterExchange, right in your browser app, in addition to storing, sending, and purchasing SPL tokens in the wallet,” it stated.