According to an announcement made on January 24, developers and projects building on blockchain can now access token extensions on Solana (SOL). The token extension will enable developers to access specific use cases.
New Feature on Solana
Some of these use cases are not available on the public blockchain. The announcement indicates that the use scenarios include governance for real-world assets (RWA) and stablecoin development. The token extension is a program that allows the creation of non-fungible tokens at the core protocol level. Anatoly Yakovenko, the CEO and co-founder of the project, also commented on the development:
We are already seeing the potential to create using token extensions through the deployments of some of the most recognizable names in crypto.
Solana’s development activity was checked for compatibility with the introduced feature. According to data from Santiment, development activity increased from 1.35 to 1.88 over the last five days. Development activity is determined by work done in public GitHub repositories. An increase in the metric may indicate that developers are actively implementing new features. However, a decrease could mean a reduction in commitment to improving the network.
Additionally, the token extension feature could lead to the introduction of new cryptocurrencies built on Solana. Last year, the blockchain emerged as one of the go-to places to launch tokens. This led to the emergence of names like Bonk (BONK), Myro (MYRO), and dogwifhat (WIF). Therefore, market participants may experience a new wave of cryptocurrencies supported by the Solana blockchain in the coming months.
Current Data on Solana
In addition to token distribution, Solana plans to incorporate companies into its ecosystem. It may be useful to recall that the project has partnered with payment giant Visa. Sheraz Shere, head of payments at the Solana Foundation, stated in a press release that the project could do more. The expert said in his statements:
By natively enabling features that are important to regulation-compliant large organizations with token extensions, we are expanding the possible for corporate adoption of blockchain.
Furthermore, Solana’s total value locked (TVL) has decreased by 21.30% in the last 30 days. According to DeFiLlama, the TVL was at the level of 1.34 billion dollars at the time of writing. TVL tracks the value of assets that are locked or staked in a protocol.