Solana stands out as one of the most active networks, looking at engagement levels over the past few months. Despite concerns about FTX and whether asset allocation will lead to a dump, bulls are optimistic about what lies ahead.
Stockholders expect SOL prices to rise in the coming days for multiple reasons. While “Uptober” excitement could be a consideration, it is all about on-chain activity, which is directly related to SOL demand.
Solana undercuts Ethereum and layer-2s in transaction volume
In a post on X, one analyst Notes Solana records higher volume than Ethereum and layer 2 platforms like Base, Arbitrum, and Optimism. Over the last day, Solana recorded a trading volume of over $1.6 billion, an increase of 45%.
Ethereum recorded over $751 million during this time, up 4%. While there was generally impressive double-digit growth in Base and Arbitrum, at 22% and 47% respectively, volume was down.
Base, the fourth largest, recorded $480 million, while Arbitrum, the next largest, recorded $240 million. Polygon, an Ethereum sidechain, recorded volume of over $93 million, up nearly 4%.
Solana has outperformed Ethereum and its second layer and surpassed activity on the BNB chain. Although the exchange is the third most active, generating more volume than any of Ethereum’s multiple tiers, volume was down nearly 3% to $671 million.
The spike in Solana’s transaction volume indicates the network’s role in the broader cryptocurrency ecosystem and users’ preference for highly scalable solutions. Blockchain adoption is also one of the factors being worked on.
Despite a 45% rise in transaction volume, Solana did not stop, as was the case in the past when increased activity forced the network offline.
Is Pump.Fun Token planning to push SOL above $200?
As Solana improved and became more reliable, lower fees and the success of tokens like Bonk and DogWifHat, for example, led to increased meme activity. Even with Tron launching SunPump, the Pump.fun business is gaining momentum.
Recently, the team He said They may release their native token and launch a coin trading portal for professional traders. With the planned release of the original Pump.fun token, activity on Solana could continue to rise as users flock to participate and get a chance to receive free tokens.
Out of this scramble and spike in on-chain activity, SOL could benefit. The coin is trading above its September highs, trading at over $166. This breakout could build a base for further gains, taking SOL above $200 in a continuation buy trend formation.
Featured image from Canva, chart from TradingView