Solana is emerging as one of the most active networks, looking at the participation levels in recent months. Despite concerns surrounding FTX and whether the asset allocation will lead to a decline, bulls are optimistic about what lies ahead.
Holders expect SOL prices to rise in the coming days for multiple reasons. While “Uptober” hype could be a consideration, it all has to do with on-chain activity, which directly correlates to SOL demand.
Solana invests ethereum and Layer-2 in transaction volume
In a post on x, an analyst x.com/0xGumshoe/status/1848076723390152781″ target=”_blank” rel=”noopener nofollow”>grades that Solana is registering more volume than ethereum and its layer 2 platforms such as Base, Arbitrum and Optimism. During the last day, Solana registered more than 1.6 billion dollars in volume, adding 45%.
ethereum recorded over $751 million during this time, an increase of 4%. While there was double-digit and generally impressive growth in Base and Arbitrum, at 22% and 47%, respectively, volume was low.
Base, the fourth largest, posted $480 million, while Arbitrum, the next largest, posted $240 million. Polygon, an ethereum sidechain, recorded over $93 million in volume, up almost 4%.
Solana outperformed ethereum and its layer 2 and outperformed activity on the BNB chain. Although the platform is the third most active and generates more volume than any of ethereum's multiple layer 2s, volume fell almost 3% to $671 million.
The increase in Solana transaction volume points to the network's role in the broader crypto ecosystem and users' preference for highly scalable solutions. Blockchain dependency is also a factor being worked on.
Despite the 45% increase in transaction volume, Solana did not stop, as has happened in the past when a surge in activity forced the network to go offline.
Is Pump.Fun Token Planning to Push SOL Above $200?
With Solana improving and becoming more reliable, low fees and the success of tokens like Bonk and DogWifHat, for example, have caused meme coin activity to increase. Even with Tron launching SunPump, Pump.fun's activity is gaining momentum.
Recently, the team x.com/pumpdotfun/status/1847408704036974975″ target=”_blank” rel=”noopener nofollow”>saying They could launch their native token and a meme coin trading portal for professional traders. With the planned launch of Pump.fun's native token, activity on Solana could continue to increase as users scramble to participate and have a chance to receive free tokens.
From this fight and increase in on-chain activity, SOL could benefit. The coin is trading above September highs, trading above $166. This breakout could set a foundation for further gains, lifting SOL above $200 in a buying trend continuation formation.
Featured image from Canva, TradingView chart
