Institutional investments in Solana-based applications surged to $173 million in Q3 2024, marking a significant increase, according to a Messari report.
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Institutional investments in Solana-native blockchain applications have seen a resurgence in the third quarter of 2024.
During the third quarter, 29 Solana-based decentralized applications (DApps) raised a cumulative $173 million, marking a more than 54% increase compared to the previous quarter.
This funding amount represents the highest level of investment in Solana since the second quarter of 2022, despite the number of funding rounds decreasing by 37%, according to a Messari report shared with Cointelegraph.
The report follows Solana surpassing Ethereum in daily fees, generating over $2.54 million in fees on Oct. 28, compared to Ethereum’s $2.07 million, Cointelegraph reported.
Solana is among the leading layer-1 blockchains, often touted as an “Ethereum killer” for its monolithic scaling approach, which aims to enhance transaction throughput and reduce fees without relying on layer-2 blockchains.
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Solana’s fee-generating users increase to 1.9 million
Solana’s fee generation has seen a significant increase during the third quarter, increasing the network’s profitability.
During the third quarter, average daily fee payers rose to 1.9 million, an increase of over 109% quarter-over-quarter, while average new fee payers grew by 430% to 1.3 million.
However, the average daily non-voting-related transactions decreased by 12% to 62 million.
While Solana’s average transaction fees increased by 6% to 0.00015 Solana (SOL) tokens, or $0.023, the media transaction fee saw an over 19% decrease.
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Institutions are driving tokenization growth on Solana
By the end of the third quarter, Solana was the third-largest blockchain by tokenized treasuries, thanks to continued institutional growth.
A total of $123 million worth of treasuries were tokenized on Solana, compared to Stellar’s $422 million and Ethereum’s $1.6 billion.
Solana-based tokenized treasuries are poised for continued growth as asset management giant Franklin Templeton plans to launch a money market fund on the network.
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Global banking conglomerate Societe Generale will also contribute to the growth of the blockchain, noted the report.
Societe Generale is launching a euro-denominated stablecoin, as it prepares for the full implementation of the Markets in Crypto-Assets (MiCA) bill. The new stablecoin was already worth over $37 million on Ethereum, as Societe Generale’s crypto unit plans to add support for Solana.
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This article first appeared at Cointelegraph.com News