Solana transaction volume hits highest level in more than a year as memecoin activity increases

Solana SOL

-7.25%
According to figures, the daily transaction volume has reached more than 40 billion dollars The block’s data dashboard. That is the highest level since October 2022.

The increase in economic throughput of tokens built using the SPL standard, meanwhile, is at levels not seen since late 2022.

The current value of transactions on Solana has increased by 700% compared to the volumes recorded in early December, when the seven-day moving average of transaction volumes was approximately $5 billion.

According to Nansen Research Manager Sandra Leow, “Solana-based transactions have increased from approximately 20 to 30 million daily transactions to approximately more than 50 million today.”

“We are also seeing the number of daily active wallets on Solana increase year to date from approximately 120,000 in October 2023 to approximately 470,000 in January 2024,” Leow told The Block.

Solana-based memecoin market activity is increasing

Data scientist Andrew Hong told The Block about onchain analytics indicate that, after SOL-USDT/USDC pairs, the primary volume within the Solana ecosystem is driven by three memecoins.

Referring to a recent Dune Analytics chart, Hong said that “you can see that most of the volume is driven by USDC, USDT and SOL pairs. Following are the next three meme coins.”

Solana ended 2023 as the best performing altcoin. During the December cryptocurrency market rally, many Solana-based memecoins rose in value. For example, as of January, a Solana-based memecoin called BONK is up more than 7,000% from its price a year ago.

Data shows that after stablecoin pairings, the next group of SOL pairs by volume are Solana-based memecoins. Image: Andrew Hong Dune Analytics.

Big wins

Social media has seen reports of large profits from successful Solana-based memecoin transactions. According to blockchain analytics platform Lookonchain, a trader made $2 million after buying a memecoin.

“Starting with just 1.5 SOLthis trader made $2 million in 22 days, a profit of 21,715x, “Lookonchain Posted on X.

While there have been success stories in the past month, Solana-based memecoin developer Tommy McKaughan emphasized that the memecoin market “is a volatile world and traders should be cautious as past successes do not guarantee future profits.”