Solana released quarterly report; Decentralized exchanges are falling in volume; SEC may appeal XRP decision.
Solana’s quarterly report has been released. The Tier-1 blockchain network did not reflect the problems it experienced in the first quarter to the second quarter.
According to a report by Solana Foundation, Tier-1 blockchain network Solana has seen significant improvement in reliability and uptime since Q1 2023.
Faced with only one outage in the first quarter of the year, Solana also released its latest performance report, which states that the network has improved in the first half of 2023, based on uptime and voted transaction rates of non-voted transactions.
As you know, Solana has been grappling with reliability and uptime issues in recent years. Solana’s co-founder, Anatoly Yakovenko, considered the disruptions experienced in previous years as a kind of ‘curse’. However, Yakovenko stated that the interruptions in the network were due to low-cost transactions.
The latest report states that Solana has had 100 percent uptime since February 25, so there was no downtime during the quarter. In the only outage in February, the network was offline for almost 19 hours.
The report also noted that there were improvements in the ratio of voting transactions to non-voting transactions.
As is known, the number of transactions per second (TPS) is also used to measure the performance and efficiency of the network. Solana’s maximum daily TPS has been climbing since January, and this increase is linked to new network upgrades. Dune Analytics, on the other hand, reported the current figure on the network as 3,777 transactions per second.
Decentralized exchanges are falling in volume
There has been a decrease in the transaction volumes of decentralized cryptocurrency exchanges (DEX).
Although users lost their trust in centralized exchanges after the collapse of FTX, DEXs have yet to be able to take advantage of this, either.
Decentralized exchanges that directly connect buyers and sellers have faced pressure to improve their services as their market share has slumped.
On such exchanges, users hold their own tokens instead of handing them over to a third party.
Cryptocurrency investors have largely lost confidence in centralized cryptocurrency exchanges with the collapse of FTX last November. After the events, it was predicted that there would be a great growth in exchanges such as Uniswap and dYdX.
However, the results were not as expected. According to Kaiko’s data, monthly spot trading volumes on decentralized exchanges fell by 76% compared to January 2022, to $21 billion. According to the data presented, the market share of these platforms decreased from 7% to 5% compared to March, the peak of 2023.
Although decentralized exchanges allow users to secure their tokens on their own, they have a more complex user interface, slower transaction speed, and lower liquidity than centralized exchanges.
According to the data of Token Terminal, there is a regular increase in the number of users in DEXs. Users have increased steadily since 2020, reaching 1 million this year. The targeting of Binance and Coinbase by regulators following the collapse of FTX could be a major catalyst for this increase.
SEC may appeal XRP decision
The U.S. Securities and Exchange Commission (SEC) described the court’s decision regarding XRP as wrong.
According to The Wall Street Journal’s report, the SEC described the decision in favor of Ripple as a mistake and signaled that it would appeal.
U.S. District Judge Analisa Torres justified Ripple by ruling that the sale of XRP on public cryptocurrency exchanges is not a sale of securities. However, he described the institutional sale of XRP as a security sale.
Torres’ decision allegedly contradicted a fundamental principle of federal investor protection law. According to this principle, individual investors should be protected more than institutional investors.
SEC lawyers said it was impossible to reconcile the reasoning of the decision with securities law principles.
XRP’s victory positively impacted the industry
The decision on XRP has greatly changed the attitude of cryptocurrency exchanges towards the asset. Many exchanges such as Coinbase, Kraken, CryptoCom have decided to relist XRP.
The Winklevoss brothers stated that they have started research for the listing of XRP on the crypto money exchange Gemini.
Following the court’s decision, the value of XRP also increased by more than 80%. With the increase, the crypto market witnessed a minor rally.
