Looking at engagement levels over the past few months, Solana has emerged as one of the most active networks. Despite concerns surrounding FTX and whether the asset distribution will lead to a fire sale, bulls are optimistic about what lies ahead.
Holders expect SOL price to rise in the coming days for multiple reasons. “Uptober” excitement may be something to consider, but it’s all about on-chain activity and directly correlates to SOL demand.
Solana overturns Ethereum and Layer 2 in transaction volume
In a post about X, one analyst said memo Solana is said to be recording more volume than Ethereum and its layer 2 platforms such as Base, Arbitrum, and Optimism. In its final day, Solana increased its trading volume by 45% to more than $1.6 billion.
During this period, Ethereum increased by 4% to more than $751 million. Base and Arbitrum had impressive overall double-digit growth of 22% and 47%, respectively, but trading volumes were low.
The fourth largest, Base, clocked in at $480 million, followed by Arbitrum, at $240 million. Polygon, an Ethereum sidechain, increased its trading volume by nearly 4% to more than $93 million.
Solana has outperformed Ethereum and its Layer 2, and outpaced BNB chain activity. Although the platform is the third most active and generates more trading volume than any of the multiple Ethereum Layer 2s, trading volume decreased by nearly 3% to $671 million.
Solana’s surge in transaction volume demonstrates the network’s role in the broader crypto ecosystem and user preference for highly scalable solutions. Reliance on blockchain is also an element we are working on.
Despite a 45% spike in transaction volume, Solana did not go down. This is similar to past cases where networks were taken offline due to spikes in activity.
Is Pump.Fun token planning to push SOL above $200?
As Solana has improved and become more reliable, memecoin activity has surged due to low fees and the success of tokens like Bonk and DogWifHat. Despite Tron launching SunPump, Pump.fun activity is gaining momentum.
Recently, the team said They might launch a native token and release a memecoin trading portal for professional traders. With the planned release of Pump.fun's native token, activity on Solana is likely to continue to increase as users scramble for the chance to receive free tokens.
SOL could benefit from this scrambling and surge in on-chain activity. The coin is trading above its September high and is trading above $166. This breakout could establish a foundation for further upside and could take SOL above $200 in a buy trend continuation formation.
Featured image from Canva, chart from TradingView
