How does Solana (SOL) affect $40 billion in daily transactions?
Solana's SOL price experienced a significant decline in the first week of the new year, falling 10 percent to $100. This decline marked a significant improvement from the January 2 high of $115.
Still, the ecosystem continues to grow, seeing transaction volumes increase and stablecoins dominate.
The price of SOL will freeze
Last year, Solana emerged as one of the top performing cryptocurrencies with a staggering increase of nearly 1,000%. While most of this growth occurred at the end of the year, it coincided with a resurgence in Solana Diffie's sector and increased network activity.
Many observers expected this positive trend to extend into the new year, supported by early indicators. In the year On December 31, SOL was trading at $103 and on January 2, it quickly rose to $115. But the altcoin price experienced a correction on January 3, triggered by a report that the US SEC may reject all pending Bitcoin ETF applications.
Since then, the price has continued to decline, with the price of SOL falling to $92 earlier today. Solana has recovered to $95.35 as of press time.
Read More: Is Solana (SOL) Set To Skyrocket By 50x By 2024?
It's worth noting that the decline coincides with a broader decline in several top cryptocurrencies, including Ethereum, XRP and Cardano. The prices of these digital assets fell by 3%, 9% and 14% respectively.
The Solana network grows
Despite SOL's volatile price performance, Solana's network is seeing high activity. Daily transaction volume on Solana has topped $40 billion, making it the network's highest transaction volume since October 2022.
“Solana's daily trading volume has reached a new high of over $40 billion – the highest since October 2022! Economic activity for SPL standard tokens is at a peak, not seen since the end of 2022,” IATH Studio pointed out.
The increase in Solana's transaction volume is primarily attributable to Mem Coin transactions. In particular, Solana-based meme coins, such as BONK and WIF, have gained interest from the crypto community due to their impressive price performance.
Read more: Alert: Deepfake Anatoly Yakovenko video targets Solana (SOL) holders
According to data from Artemis, Solana is emerging as a major force for stablecoin transactions due to its cheap fees. As of January 1st, Solana-based USD transaction volumes surpassed USDT on the TRON blockchain by more than 40 billion.
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