It appears that the revival of Solana, according to Barrett from Cypher Protocol, hinges on the introduction of new tokens by teams working on the Solana blockchain. The inception of previously unissued tokens plays a pivotal role in garnering trading activity, liquidity, and most critically, user influx into a decentralized finance ecosystem in dire need of the three aforementioned elements.
Cypher’s founder Barrett championed this prospect while discussing the success of loyalty programs instituted by Cypher and MarginFi, an on-chain lending platform. These programs grant ‘points’ to those who actively participate in their respective crypto trading markets. Not actual tokens themselves, these reward points are largely believed to be precursor of a forthcoming token payout.
Despite the suspense enveloping the potential token launch or airdrop event by the crypto lending startup, enthusiastic crypto traders are actively contributing to Cypher’s already bustling markets, driving the trade of crypto assets like BTC, SOL, and ETH.
This anticipation-ridden atmosphere gave Cypher its first savor of triumph after several adaptive transformations over the course of three years. Cypher is currently in its third version, described by Barrett as a “generalized decentralized exchange”, and has recently amassed $2 million in total deposits.
An important question rises: Will this Solana DeFi resurgence ascend back to its prime status of multi-billion dollars, or will it find itself treading the agonizing path towards insignificance? Evidence of successful progress can be seen with Cypher consistently ranking within the top five for user and TVL growths in the Solana ecosystem across different periods of time.
This new wave, dubbed as “Solana DeFi 2.0”, holds the potential of reshaping the scope of the Solana ecosystem, which has been affected by previous token-related scandals, as well as the prevailing influence of Sam Bankman-Fried of the FTX fame.
Barrett holds a rational and somewhat skeptical view of the crypto market, suggesting that free tokens can help maintain the interest and involvement of traders. However, it’s worth pondering over whether new capital influx is happening in the Solana ecosystem or if it’s just the same money circulating.
Whether or not these anticipated token-driven dominants can propel the Solana DeFi ecosystem back to its glorious status remains to be seen. If successful, this evolution has the potential to fuel a buzz that may uplift the Solana narrative in ways that hasn’t been seen for over a year.
Source: Coindesk
