Solana is emerging as one of the most active networks, looking at engagement levels over the past few months. Despite concerns around FTX and whether asset distribution will lead to a dump, bulls are optimistic about what lies ahead.
Holders expect SOL prices to climb higher in the coming days for multiple reasons. While the “Uptober” excitement could be a consideration, it is all concerned with on-chain activity, directly correlating with SOL demand.
Solana Flips Ethereum And Layer-2s In Transaction Volume
In a post on X, one analyst notes that Solana is registering more volume than Ethereum and its layer-2 platforms like Base, Arbitrum, and Optimism. Over the last day, Solana posted over $1.6 billion in volume, adding 45%.
Ethereum posted over $751 million during this time, up 4%. While there was double-digit and generally impressive growth on Base and Arbitrum, at 22% and 47%, respectively, volume was low.
Base, the fourth largest, recorded $480 million, while Arbitrum, which followed, registered $240 million. The Polygon, an Ethereum sidechain, posted over $93 million in volume, up nearly 4%.
Solana outperformed Ethereum and its layer-2s and surpassed activity on the BNB Chain. Although the platform is the third most active, generating more volume than any of the multiple Ethereum layer-2s, volume fell by nearly 3% to $671 million.
The spike in Solana’s transaction volume points to the network’s role in the broader crypto ecosystem and users’ preference for highly scalable solutions. The blockchain’s reliance is also a factor that’s being worked on.
Despite the 45% spike in transaction volume, Solana didn’t stop, as it was the case in the past when a surge in activity forced the network offline.
Pump.Fun Token Plans To Push SOL Above $200?
With Solana improving and becoming more reliable, the low fees and the success of tokens like Bonk and DogWifHat, for example, have seen meme coin activity surge. Even with Tron launching SunPump, Pump.fun activity is picking up steam.
Recently, the team said they might launch their native token and release a meme coin trading portal for professional traders. With the planned release of Pump.fun’s native token, activity on Solana could continue rising as users scramble to engage and stand a chance of receiving free tokens.
Out of this scramble and spike in on-chain activity, SOL could benefit. The coin trades above September highs, changing hands at over $166. This breakout could build a base for more gains, lifting SOL above $200 in a buy trend continuation formation.
Feature image from Canva, chart from TradingView
