Solana Surpasses Ethereum in Network Activity Amid Memecoin Frenzy
Summary:
Solana's network activity surged past Ethereum over the weekend, driven by the frenzy for new memecoins. The intense activity resulted in network congestion and numerous transaction failures. In just 56 hours, a new memecoin, Book of Meme (BOME), escalated from near zero to a market capitalization of $1.45 billion. With a significant uptick in the network activity, Solana's price increased to $200, marking a 7.6% weekly rise, and its market cap surpassed Binance's BNB to become the fourth-largest cryptocurrency, at $88.5 billion.
Over the past weekend, Solana's network activity trumped that of Ethereum, fuelled mainly by the frenzy for Solana-based memecoins. However, this sudden surge proved too much for the network to handle efficiently. According to data from DefiLlama, on 16th March, the total trading volume on Solana skyrocketed past Ethereum, hitting an impressive $3.52 billion—surpassing Ethereum's daily volume by a striking $1.1 billion margin. The previous day, 15th March, Solana had set a new record with a $3.79 billion trading volume. Nevertheless, this unprecedented surge in network activity led to numerous instances of failed or missing transactions, frustrations shared by many users across various platforms. Data from Solana Validator, shared by a user by the pseudonym "Dagnum", disclosed that the network's ping time ranged between 20 and 40 seconds at 8 pm UTC on the 16th, causing about half of the transactions to fail for roughly 20 minutes. The network congestion on Solana hit new peaks as well. The driving force behind the surge in Solana network activity was largely the frenzied interest in new memecoins. On 14th March, traders started flocking to a freshly launched memecoin named Book of Meme (BOME), which skyrocketed from almost zero to a $1.45 billion market capitalization within a 56-hour window. Another memecoin,"$NAP" (NAP), too gathered significant traction, its market cap soaring from about $20 million to over $330 million in under 18 hours. See also: Early trader misses out on $1M profit after prematurely selling a Solana memecoin. Alongside the sharp surge in network activity, the price of Solana (SOL) also witnessed significant growth. It is now valued at $200, marking a 7.6% increase over the past week and a 38.4% rise over the last month, according to CoinGecko data. This has helped Solana achieve a new record in terms of market cap. Moreover, Solana has now outpaced Binance's BNB (BNB) coin to occupy the fourth spot in the largest cryptocurrencies by market cap, standing at $88.5 billion. Coupled with an overall growth in the total supply of Solana tokens, the network's market cap is now nearly $12 billion above its previous high of $76.5 billion reached on November 7, 2021. Related Report: Inside Pink Drainer - A security analyst justifies his cryptocurrency scam franchise.
Published At
3/18/2024 4:20:34 AM
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