Solana Was Too Late to Perps

Carlos and Sam from Blockworks Research, along with Toma from Blockworks Advisory, discuss the resurgence in traditional equity markets and its correlation with increased on-chain activity, particularly on Solana. Solana has experienced a notable rise in double-year aid activity and reached an all-time high in tokenized asset volume, driven by equities, including public and pre-IPO stocks. The growth in real-world asset (RWA) deposits, attributed to the Prime platform, signifies a diversification beyond cryptocurrency.

Sam emphasizes the ongoing strength of tokenized assets and RWAs, indicating a positive shift in private market activity. Trading volumes have shifted, with USD pairs and stablecoin swaps surpassing meme coins, which have historically dominated Solana's trading landscape. Despite a decline in meme coin trading, retail interest remains strong, with expectations for continued activity during market volatility.

The conversation also covers projects like Phantom, which are integrating broader asset functionalities, including stock earnings notifications and direct stock token purchases. The liquidity for trading pairs like Sol/USDC is improving, suggesting a more favorable trading environment.

The discussion shifts to PumpFond, which recently burned 36% of its token supply and altered its buyback strategy, raising concerns about future capital generation and investor relations. Participants express skepticism about the token's value and advocate for a programmatic buyback model to enhance trust and transparency. They propose creating a token transparency framework to clarify holders' rights, which could bolster investor confidence.

Concerns about the decision not to allocate the burned supply to an airdrop are raised, with participants agreeing that such a move would have wasted capital. The financial implications of the buyback are significant, with estimates of $370 million spent leading to realized losses. Key factors affecting PumpFond's valuation include a lack of communication from the team and uncertainty about future direction.

The conversation highlights the challenges in the meme coin market, with skepticism about the consensus that meme coins will return to zero, despite significant daily revenue figures for coins like Pump. The trading environment for meme coins on Solana is complicated by advanced tools that obscure actual trading activity, with developers potentially inflating trading volumes.

Pumpcade, a project by PopPunk on Chain, is developing a non-chain prediction market product and has conducted an asset conversion to equity round, allowing token holders to convert their tokens into hypothetical equity. This trend in the crypto space is moving away from dual equity-token models, making it noteworthy.

Investment opportunities in tokens versus equity are discussed, with a viewpoint suggesting that retail investors should have access to both options. Pumpcade aims to provide everyday investors access to both equity and tokens, leveling the playing field. There is a consensus that equal investment opportunities are crucial for the industry's future.

The conversation transitions to broader trends in trading activity across various chains, including Solana and BNB chain. Spot trading on Solana has achieved notable success, driven by proprietary automated market makers (AMMs) and a competitive liquidity environment. However, skepticism exists regarding Solana's ability to replicate this success in perpetuals (perps) trading due to challenges such as high throughput requirements and the need for timely order cancellations.

Market makers struggle with flow quality assessment, resulting in wider spreads. Discussions around protocol upgrades aim to improve the execution environment for perps, with projects like Judo BAM and ANZIS constellation being crucial for stabilizing conditions for market makers.

The main hurdle for Solana's perps teams is to enhance both technical capabilities and the execution environment. Jupiter, which currently has three markets, has seen a decline in its contribution to Solana's perps volume. Wallets like Phantom and Rabi are integrating perps offerings to boost revenue, directing users to existing exchanges that have already generated significant income.

The pressing issue remains how to incentivize users to trade on Solana's platform, with potential campaigns facing challenges in user behavior and market dynamics. The conversation acknowledges the need for more regular communication with the IR crew and Solana-focused research members, as well as the anticipation regarding the progress of rollouts over the next six to twelve months. While Solana has seen success in spot trading, there is a pressing need to focus on perps, with speculation that 2026 or 2027 could be pivotal years for this segment on Solana.