Solana (SOL) has introduced a token extension feature that enables developers to access specific use cases not available on the public blockchain. This new functionality allows for the creation of non-fungible tokens (NFTs) at the core protocol level and is expected to facilitate the management of real-world assets (RWAs) and the development of stablecoins.
Anatoly Yakovenko, CEO and co-founder of the project, has expressed optimism about the potential of token extensions, which are already being utilized by some of the most recognizable names in crypto. This development could lead to an increase in the number of new cryptocurrencies built on Solana, as seen with the emergence of tokens like Bonk (BONK), Myro (MYRO), and dogwifhat (WIF) in the past year.
Data from Santiment shows that Solana’s development activity has increased from 1.35 to 1.88 over the past five days, indicating that developers may be actively implementing new features. However, a decline in this metric could suggest a decrease in commitment to improving the network.
Furthermore, Solana is planning to attract firms and has already partnered with payment giant Visa. Sheraz Shere, head of payments at Solana Foundation, stated that token extensions could expand the blockchain’s corporate adoption by enabling features important to regulated large institutions.
Despite these developments, Solana’s Total Value Locked (TVL) has decreased by 21.30% over the last 30 days, with TVL currently at $1.34 billion according to DeFiLlama. TVL measures the value of assets locked or staked in a protocol.