Introduction to Solana’s Recent Performance
Solana is rapidly emerging as one of the most dynamic networks in the cryptocurrency sector, with increasing engagement levels observed over the past few months. Despite ongoing concerns about the fallout from FTX and the potential for asset distribution to lead to a market dump, bullish sentiment among investors remains strong. Holders are optimistic that SOL prices will continue to rise in the coming days, driven by several factors. While the excitement around “Uptober” plays a role, the primary driver is on-chain activity, which is directly linked to the demand for SOL.
Solana Surpasses Ethereum and Layer-2s in Transaction Volume
In recent observations, analysts have highlighted that Solana is registering more transaction volume than Ethereum and its layer-2 platforms, such as Base, Arbitrum, and Optimism. Over the last day alone, Solana reported over $1.6 billion in transaction volume, marking a significant 45% increase. In comparison, Ethereum recorded $751 million in transaction volume during the same period, with a modest 4% growth. Although Base and Arbitrum saw double-digit growth at 22% and 47% respectively, their overall volume remained relatively low.
Base, the fourth-largest platform, recorded $480 million in transaction volume, while Arbitrum followed with $240 million. Polygon, an Ethereum sidechain, posted over $93 million in transaction volume, representing a nearly 4% increase. Solana’s performance surpassed that of Ethereum and its layer-2 solutions, as well as activity on the BNB Chain. Despite being the third most active platform, generating more volume than multiple Ethereum layer-2s, Solana’s transaction volume saw a slight decline of nearly 3% to $671 million.
This surge in Solana’s transaction volume highlights its significant role within the broader crypto ecosystem and users’ preference for highly scalable solutions. The network’s reliability is also being addressed and improved. Notably, despite the 45% spike in transaction volume, Solana did not experience any network outages, a positive change from past instances where increased activity forced the network offline.
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The Impact of Meme Tokens on Solana’s Growth
With Solana’s improvements and increased reliability, the network’s low fees and the success of tokens like Bonk and DogWifHat have fueled a surge in meme coin activity. Even as Tron introduced SunPump, the activity on platforms like Pump.fun is gaining momentum. Recently, the Pump.fun team announced plans to launch their native token and create a meme coin trading portal for professional traders. This planned release could further increase activity on Solana as users scramble to engage with the platform and potentially receive free tokens.
As a result of this heightened on-chain activity, SOL stands to benefit. The coin is currently trading above its September highs, with prices exceeding $166. This breakout could establish a foundation for further gains, pushing SOL above the $200 mark in a continued bullish trend.
