Pantera believes that Solana will dominate the blockchain sector, comparing its development to Apple’s breakthrough with macOS

A recent report from Pantera Capital highlighted Solana’s (SOL) potential to become a dominant player in the blockchain ecosystem, drawing parallels between its monolithic architecture and Apple’s macOS.

The report, authored by general partner Franklin Bi, portfolio manager Cosmo Jiang and investment analyst Eric Wallach, outlines Solana’s growing influence and its implications for the future of blockchain technology.

According to the report, the blockchain ecosystem is expected to cluster around a few dominant platforms driven by developer preferences, and Solana’s integrated approach is poised to capture much of that consolidation.

Pantera called developers the “root” of the blockchain ecosystem, shaping cryptocurrencies broadly and acting as clients who create applications that increase demand for blockchain space. As a result, the use of blockchain technology may center around a small blockchain oligopoly, similar to Windows, MacOS and Linux in the desktop market.

Monolithic architecture

According to Pantera, Solana’s monolithic design ensures a seamless user experience, faster innovation and greater security, making it an attractive choice for developers and end users alike. Solana’s capabilities enable innovative applications across sectors, from content distribution and decentralized mapping to capital-efficient financial markets.

Historically, Ethereum has been the leading blockchain development platform, accounting for 70-80% of developer activity. However, according to the report, Solana is rapidly gaining popularity.

It compared Solana’s rise to Apple’s breakthrough from Microsoft in the early desktop market, highlighting its monolithic architecture as a key differentiator. This approach allows the network to optimize each element of the blockchain, offering significant advantages over modular blockchains such as Ethereum and Cosmos.

Pantera said Solana’s similar approach provides a seamless user interface that eliminates the need for chaining and enables faster innovation and product improvements. It also offers high security with a single-chain design reminiscent of Apple’s “tight control over its ecosystem.”

Growth all around

Solana saw growth in other categories. Pantera noted that Solana’s unique address count increased from 14,000 in October 2020 to 1.34 million in March.

Priority fees increased from $100,000 per month in mid-2023 to $60 million in March, demonstrating the “intensity of demand for block space in Solana.”

Solana accounted for 85% of all new tokens on DEXs in May, up from 50% a year ago, amid a “surge” fueled by memecoin activity. Pantera said this was a sign of strong retail usage.

The network’s share of DEX volumes increased from 0% in early 2021 to 24% in May, representing over 60% of incremental DEX volume during the month.

Meanwhile, the web’s most popular wallet, Phantom, briefly topped various iOS app store categories and became the most downloaded app in late May and early June. Pantera called it a “remarkable feat” and a sign of mainstream adoption of the currency, once again relating it to the memecoin trading boom.

Solana’s total economic value, i.e. transaction fees plus maximum extractable value (MEV), exceeded 32% of the same metric on Ethereum. This trend “captures real economic value for SOL token holders” and attracts interested parties. Additionally, it will improve decentralization and security.

Mentioned in this article