ON–152: Solana (Part 2)
Coverage on Jupiter and Magic Eden.
Jan 13, 2023
- Jupiter is Solana's largest swap aggregator, executing more than $29b of swap volume all-time. Based on our analysis, it is one of the fastest crypto protocols ever to exceed $20b of volume.
- Jupiter has slowly and steadily consolidated market share for swap originations on Solana. Today, ~70%+ of swaps as measured by user count are originated by and executed on Jupiter. Jupiter's market share is roughly ~60% as measured by swaps volume.
- Jupiter's SDK is integrated broadly across the Solana ecosystem, most notably by Phantom. Jupiter is also used by professionals, and is a hub for arbitrage activity on Solana. As of this month, roughly 12% of all volume on Jupiter is coming from an arbitrage transaction.
- Magic Eden is the leading NFT marketplace on Solana. While the FTX collapse and resulting SOL’s 60% price crash would seem to negatively impact the NFT market, Solana NFT volume actually increased. In short, with SOL lower and NFTs consequently cheaper, traders are transacting more. In fact, Solana NFTs saw their highest volumes the first week of January since September, and most November volumes tracked above levels in late June / July. Zooming in on Magic Eden, the exchange has seen daily volumes recover ~3-4x since early December, tracking ~300k SOL / ~$5m.
- Magic Eden’s DAU are tracking ~10k traders. While user growth dipped during the FTX collapse and its resulting contagion in the Solana ecosystem, activity has started to recover. Users are quite active: daily transactions per user are tracking ~3-6 over the past two weeks.
- While Solanart and others were able to temporarily chip away at Magic Eden’s market share in October, the project has returned to ~95% control of Solana NFT marketplace volume.
