Solana Users: Where Are They In Globally?

Questions: The purpose of this article is to discuss using on-chain data, such as identifying geographical distribution of usage and if emerging markets have been used.  Do you see a steady volume of transactions throughout the day, or is it more popular during the active hours of the West? Calculate the frequency of different transactions (defi, NFTs, transfer) on Solana and see if there are spikes?  Do centralized exchanges generally provide less inflow to Solana than do other chains? Based on which centralized exchanges are popular on Solana, can you determine where users are coming from? Are there any average transfer amounts, average swap sizes, and average NFT sales? Does Solana appear to be accessible to emerging markets?

Due to its low fees and low entry barrier, Solana has been mocked by some members of the crypto community as a “chain for the poor.”. Nevertheless, Solana is designed to be accessible to everyone, including emerging markets.Here we have divided users of Solana Blockchain by Western Country Users and Eastern Country Users to make our discussion easier. Thus, in this article, the Solana users are categorized as Western and Eastern Country Users in order to discuss about this topic. In practical terms, the Western World is defined as including most of the European Union along with the United Kingdom, Norway, Iceland, Switzerland, the United States, Canada, Australia, and New Zealand. The Eastern Countries, which include most of Europe, Africa, Asia, Australia, and the islands of Oceania.

Introduction About Solana

In addition to supporting smart contracts, Solana supports a variety of decentralized applications (dApps) and non-fungible tokens (NFTs).On Solana’s blockchain, there is a native token, the SOL token, which provides value transfer as well as network security. Using Solana, you can theoretically perform 65,000 transactions per second with near-zero fees. With Solana, there are two types of consensus mechanisms — Proof-of-Stake (PoS) and Proof-of-History (PoH).

Cryptocurrency holders who use Proof-of-Stake “stake” their coins with a validator. Validators are computers which run the blockchain’s software and maintain their own copy of the blockchain. They are the equivalent of miners in a proof-of-work blockchain, like Bitcoin’s. Transactions are validated by randomly selected miners using Proof of Stake (POS). By using Proof of Work (POW), we can validate transactions and add new blocks to the blockchain.

The proof-of-history method establishes that transactions have been correctly sequenced and have been found and recorded by the right leader. With Solana’s blockchain, transactions are ingested and records are created at intervals of time. To prevent time wasting, leaders are selected ahead of each slot. Proof-of-stake mechanisms allow nodes (or validators) to be selected as leaders based on the quantity of SOL they hold. It is the responsibility of each validator to continue a count or tally of the passage of time, referred to as a proof-of-history sequence, and to continue the next block of transactions.

In this section, we will categorize the geographical distribution of Solana users based on various factors, for example,

  • Using NFT sales, track Solana users globally (both Eastern and Western Countries)
  • The Solana blockchain transaction data organized by demographics (i.e., users in Eastern and Western countries)
  • In this section, we will explore the Solana Blockchain Transfers (definitions, NFTs, and other types of transfers) by demographics (i.e., Eastern and Western Country Users)
  • The Transfer of Solana Blockchain Tokens with CEX based on the geographical region of the user (i.e. Eastern and Western countries)

Analyse Solana Blockchain Users Geographically By NFT Sales 

In this section, let’s look at the NFT sales volume, the NFT average sales volume, as well as the transactions made by western and eastern country users over the past one month on Solana Blockchain.

The following graph shows the NFT sales volume on Solana over the past 30 days. From the two Demographics, Western contributes the most to total sales (64.39%) May 24, 2022, saw a maximum sale volume of $367.81K on the western side.

Based on the graph below, we can see that NFTs average sales volume was higher in eastern countries than in both demographical zones during the past 30 days. 

Out of the two Demographic segments, Western accounts for the highest share (62.29%) of total transactions. Therefore, western country users performed a greater number of NFT sales transactions. 

Analyse Solana Users Geographically By Solana Blockchain Transactions

Here, we discussed the transactions on Solana blockchain and their percentage views for two different demographics. In the below graph we can see a transactions on Solana blockchain for eastern vs western country users past 30 days . It is clear here that a higher number of Solana transactions were carried out by users in Western countries. 

Below is a graph showing the number of transactions on Solana blockchains by Eastern and Western countries over the past 30 days. In this graph, we can clearly see that the percentage of transactions made by users of western countries is higher than that of users of eastern countries.

Analyze Solana Users Geographically By Solana Blockchain Token Transfers

Our goal in this section is to analyze Solana blockchain users globally based on their token transfers according to their demographics. Among the two demographics, Western has the highest contribution (55.56%) to the total transfers.

Out of the two Demographics, Western contributes the most (54.66%). Western has the highest total token volume at 5.43B, while Eastern has the lowest total token volume at 4.5B. May 23, 2022, was the day when there was a maximum token volume of 1.21B. 

From the 2 Demographics, Eastern contributes the most (51.38%) to the total Average Tokens. Western has the lowest total Average Tokens at 423.49K, while Eastern has the highest total Average Tokens at 447.54K. The maximum average tokens of 92.16K were observed on June 7, 2022.

Analyze Solana Users Geographically By Solana Blockchain Token Transfers Using CEX

From the graph below, we can see the inflows and outflows of token volume on Solana with CEXs. Of the two directions, the direction from CEX to Solana contributes the most (50.7%) to the total token volume.

From the graph below, we can see the number of Solana token transfers using CEX for Western country users and Eastern country users, respectively. In both demographs, we can see that more than 95% of users contribute to ftx token transfers. 

Out of the two Demographics, Western contributes the most (53.85%). Western has the highest total token volume at  1.99B, while Eastern has the lowest total token volume at 1.71B. Jun 13, 2022, was the day when there was a maximum token volume of 432.25M . Total Token Volume in June 13, 2022 is higher than normal.

Of the two Demographics, Eastern contributes the most (54.63%) to total Avg Tokens. Western has the lowest total Avg Tokens of 4.61M, and Eastern has the highest total Avg Tokens of 5.55M. In June 13, 2022, 968.02K tokens were observed as the maximum average tokens.

Of the two Demographics, Western contributes the most (59.2%) to the total Token Transfers. Western has the highest total token transfers (691.27K) and Eastern has the lowest total token transfers (476.64K). May 27, 2022 was the day when the maximum token transfer number was 64.58K.

Observations

By dividing the Solana blockchain users into two different demographies such as Eastern and Western country users, we can see how they are using the Solana network globally,

  • If we take a look at the Solana NFT sales. Compared with Western country users, we found that all Solana NFT sales volumes, transactions, and average sales volumes are all higher for Western countries.
  • When it comes to Solana transactions, more Solana transactions were carried out by Western users. 
  • According to the Solana Token Transfers, Western country users contribute the most transfer volume and number of token transfers, out of the two demographics.
  • The inflows and outflows of tokens on Solana with CEXs are quite interesting. It is the direction from CEX to Solana that accounts for the most volume of tokens (50.7%).
  • The ftx token transfers are contributed to by more than 95% of users in both demographics. 
  • As for the Solana Token Transfers with CEX, Western country users are contributing the most transfer volumes and token transfers from the two demographics.
  • We can therefore conclude from all the above analysis that Western country users participate in Solana Blockchain at a higher rate than Eastern country users. 

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