Solana’s SVM, a high-performance virtual machine, is turning out to be a crucial component in the modular blockchain landscape. In contrast to Ethereum L1s that rely on existing developer bases and liquidity, Solana’s SVM rollups are taking a novel approach: targeting ETH and BTC liquidity while attracting new developers skilled in Rust, C++, and other mainstream languages.
As per Delphi Digital’s report, Solana’s influence extends beyond its native ecosystem, impacting Ethereum and Bitcoin. As the industry shifts towards modularity, Solana’s components, including its SVM and consensus mechanism, are becoming valuable building blocks for other blockchains. Some key takeaways from the report are:
The recent decoupling of SVM from validator clients has opened up new possibilities for modularity, allowing it to be integrated into various configurations. SOL’s SVM rollups aim to attract developers and liquidity from Ethereum and Bitcoin, expanding its reach beyond its native ecosystem. To further enhance the developer appeal, the SVM’s support for Rust, C++, and other mainstream languages makes it attractive to a wider range of developers.
Moreover, Solana’s consensus mechanism can be used to sequence rollups on other chains, demonstrating its versatility. Lastly, the blockchain’s own need for L2 solutions is driving the development of SVM-based rollups, further strengthening its position in the modular landscape.
Overall, Solana’s SVM is playing a key role in shaping the future of modular blockchains. By offering a high-performance virtual machine that can be integrated into various configurations, Solana is attracting developers and liquidity from other ecosystems. This expansion not only benefits the chain but also contributes to the broader development of modular blockchain technology.
Solana ETFs Gain Momentum
In other developments, Brazil’s regulator has greenlighted the second Solana exchange-traded fund [ETF] as per the CVM database. The SOL ETF is issued by Brazil-based asset manager Hashdex with over $962 million in assets under management — in partnership with the local investment bank BTG Pactual. Brazilian Securities and Exchange Commission or CVM stated that the new fund is in a pre-operational phase.
Earlier CVM approved the first-ever SOL spot ETF. The fund is provided by QR—a prominent player known for its Bitcoin and Ethereum ETFs—and will be managed by Vortx. At present, the ETF awaits final approval from B3, Brazil’s main stock exchange, It is expected to hit the market within 90 days.