ON–131: Layer 1s (Part 2)

Coverage on Solana and L1 Cohort Analysis.

Jul 29, 2022

④ Solana

📈 Solana hits ATH 450k daily unique fee payers

  • Solana’s “daily unique fee payers” hit an all-time high in May of 450k before tailing off a bit to around 300k in July. Daily unique fee payers is a proxy for daily active users, and despite recent volatility in asset prices, Solana has experienced 12x year-over-year growth in this metric.
Source: Messari / Solscan
  • Developers have continued shipping, as indicated by the ecosystem’s “daily unique programs used,” which represents applications with at least one successful instruction per day. Daily unique programs used in the Solana ecosystem are up 11x YoY to ~1,100 today.
Source: Messari / Solscan
  • Last but not least, Solana has steadily improved its Nakamoto Coefficient over the last year from 16 in July of 2021 to 30 today, meaning their validator set is becoming more decentralized.
Source: Messari / Solana Compass

⑤ L1 Cohort Analysis

👥 jp12

📈 Polygon, Solana beat Ethereum on user-retention

🔗 Report

  • Ethereum shows about 33% retention for the January cohort retained for the first 2 months. At Month 6, it’s down to ~14% users retained. For the Febuary -June cohorts, it’s down to around 10–20% retention in the first months and then high single digits in the subsequent months.
Source: Flipside Crypto
  • For Solana, monthly cohort sizes (new users joining that month) are a lot smaller than Ethereum while the user-retention is much higher in almost every month. For example, Month 1 retention for May 2022 is 45% compared to Ethereum's 11%. Month 2 retention for Feb-May is nearly 2x that of Ethereum.
Source: Flipside Crypto
  • Polygon shows a higher user-retention than Ethereum, likely due to low gas-fees and more frequent usage. Compared to Solana, Polygon’s user-retention is lower in most cohorts.
Source: Flipside Crypto