Memecoin Activity Fuels Solana Volume

The transaction volume of Solana soars to $40 billion, driven by rising memecoin activity and a surge in active wallets.

Solana has witnessed a significant spike in transaction volume, surpassing $40 billion. This marks the highest activity since October 2022, showcasing a remarkable resurgence in the crypto market. The value transacted on the Solana network showcases a staggering 700% increase from early December’s figures, where the average was around $5 billion. This surge is primarily attributed to the growing popularity and economic throughput of tokens using the SPL standard, a trend not observed since the latter part of 2022.

Solana Volume in Recent Months.
Solana Volume in Recent Months. Source: The Block

Sandra Leow, a research manager at Nansen, highlighted the substantial growth in daily transactions on the Solana network. From a range of 20 to 30 million daily transactions, the numbers have soared to over 50 million. Furthermore, there’s been a notable rise in daily active wallets, jumping from roughly 120,000 in October 2023 to about 470,000 in early 2024.

Memecoins Fuel Solana’s Market Activity

The Solana ecosystem’s primary volume, initially dominated by SOL-USDT/USDC pairs, is now increasingly driven by memecoins. According to Andrew Hong, a data scientist, the analysis of onchain data reveals this new trend. Following the dominant currency pairs, memecoins emerge as significant contributors to Solana’s transaction volume.

The performance of Solana-based memecoins has been particularly noteworthy. During the December cryptocurrency market rally, these memecoins experienced a significant surge in value. For instance, a memecoin named BONK recorded an astonishing 7000% increase over its value from the previous year. Other memecoins such as Samoyed, which have been around for a while, are also generating traction. Notably, recently launched projects such as Fudder, Analos, Dogwifhat, Myro are also generating quite some interest and are worth keeping an eye on. 

Social media reports further accentuate the lucrative nature of trading Solana-based memecoins. One notable example, as per Lookonchain, involves a trader who turned a modest investment of 1.5 SOL into $2 million within 22 days. However, Tommy McKaughan, a memecoin developer, cautions traders about the inherent volatility in the memecoin market, advising that past successes do not necessarily predict future gains.

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