Solana Projects Raise $173 Million, Decentralised Compute Infrastructure & More

Welcome back!

This is J264G and this week I’ve got these titbits for you:

• Financial Boost: Solana projects announced $173 million in funding in Q3'24.

• Ubiquitous Compute: Meet Gradient, a decentralised compute infrastructure.

• Broadening Distribution: What Solana teams can learn from Base.

They are still trying to stifle crypto ⬇️

But we keep on building. 

Now, let’s jump right into this week’s newsletter!

Click on any underlined heading/hyperlink to learn more.

Spotlight

Accelerated Maturation

We’ve reached a pivotal moment. 

Conventional financial service providers and fintechs are increasingly integrating crypto rails, and it's not hard to see why. Blockchain technology is simply more efficient, enabling frictionless, 24/7 operations that traditional systems can’t match. 

We’re also poised for an explosion in the number of institutional stablecoins — because owning the coin means owning the yield. And next, we'll see these issuers partner with DeFi platforms to amplify their stablecoins, think PayPal with PYUSD. 

But that might not be all. 

Institutions might not only want to issue their own stablecoins and expand their partnership ecosystem, but many might also want to a) start offering DeFi services, b) acquire existing DeFi platforms, or c) take up large token positions to influence the associated DAOs/foundations. The reason is simple: By doing so, they can grow and solidify their customer base in a lucrative market — young, financially literate individuals with significant wealth potential.

This marks a shift where conventional finance players are becoming competitors, not just partners.

While competition is generally good because it helps to disseminate crypto rails and solidify stablecoins as the backbone of the global economy, it raises the question: How can DeFi platforms survive and thrive in this increasingly competitive environment?

The challenge is clear. DeFi platforms often have less capital, fewer resources, and a smaller global presence compared to traditional finance. They also lack the marketing and distribution expertise that large financial institutions possess, and in most cases, they don’t have the legal know-how and backing required in multiple jurisdictions.

So, how does DeFi secure its place in this landscape while staying true to the values of censorship resistance, permissionlessness, and self custody? 

The answer lies in strategic cooperation with conventional financial players while maintaining the ethos that makes DeFi unique. This means accelerating our maturation process — not simply by increasing headcount, but by being more deliberate in how we shape our teams, DAOs, and foundations.

This demands hard questions: Do we need more 𝕏 interns and graphic designers, or would we be better off hiring growth experts for SEO, YouTube, Instagram, and TikTok? Should we attend every crypto event, or is it time to hire our first legal expert? Is it time to sponsor passion projects, or would it be more impactful to hire a country representative in regions such as Mexico, South Africa, or Indonesia?

These decisions will enable DeFi platforms to safeguard censorship resistance, permissionlessness, and self-custody, while strengthening operations to expand their user base.

Yes, the institutions are here and, yes, we should partner with them. 

But we must ensure we don’t get swallowed whole in the process.

Chart Of The Week

News Bites

Ubiquitous Compute: Meet Gradient, a decentralised compute infrastructure powered by Solana that utilises idle compute resources from local servers, edge devices, and personal computers to perform real-time processing tasks.

Broadening Distribution: In a previous newsletter, I emphasised the importance of diversifying distribution beyond 𝕏, particularly on platforms such as Google, YouTube, Instagram, and TikTok. While few Solana teams have adopted this strategy, Base i.e. Coinbase seems to acknowledge the value of multichannel marketing and is executing its growth strategy accordingly.

Going Global: Sub-Saharan Africa, though a small player in the global crypto economy, is gaining traction, with Nigeria and South Africa driving onchain activity. Stablecoins, as a hedge against inflation, now dominate crypto transactions, while the region is also leading in DeFi adoption.

ETH To SOL Liquidity: Raydium, the backbone of Solana's memecoin economy, has launched Teleport — a new feature enabling seamless token transfers from EVM networks to Solana, powered by Circle and Wormhole.

Phantom Payments: While many see Phantom just as a self custody solution, teams such as Ripe are expanding the wallet’s functionality, transforming it into a payment app.

Caught In 4K

Weekly Take

Keks & Giggles

And that's a wrap!

If you'd like to reach me, respond to this newsletter or reach out to me on 𝕏.

Talk soon!

J264G

_{DISCLAIMER
None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. Lastly, please be advised that we discuss products and services from our partners from which our team members may hold tokens/equity.}