Solana Network Activity Soars Thanks to Memecoins, But Market Cap Remains Subdued

Solana network activity is booming, with daily non-vote transactions reaching a two-year high, but SOL’s market cap hasn’t reflected this growth, raising questions about the sustainability of the current trend.

Solana’s transaction volume is surging, driven by the popularity of memecoins, but the price of its native token (SOL) hasn’t followed suit.

The Solana network has seen a significant increase in activity in recent months, with the seven-day moving average (7DMA) of daily non-vote transactions reaching its highest level since January 2022. This surge is attributed to the rise of memecoins within the Solana ecosystem, with platforms like pump.fun fueling the growth.

Despite the surge in transactions, SOL’s market cap remains significantly lower than its all-time high, indicating a disconnect between network activity and token price. This suggests the market might be skeptical about the long-term value of the current activity driven by memecoins.

However, the high level of activity also highlights the improvements in Solana’s infrastructure, which can now handle a massive number of transactions without experiencing outages. This is a significant improvement compared to two years ago when network congestion caused frequent disruptions.

The discrepancy between transaction volume and market cap raises questions about the future of Solana. Will the market eventually recognize the increased network activity, or is the current boom unsustainable? Only time will tell.

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