The Solana on-chain transaction volume exploded in December, as the SOL, the native token, punched through various price levels in the month. SOL continued this price growth into early January but has since declined to shed some of its gains.
On the other hand, on-chain data has revealed a consistent increase in the transaction volume on the blockchain, with volumes exploding by over 700% in the last 30 days.
According to data from various analytics platforms, transaction volumes on the Solana blockchain have surged to show how SOL’s popularity has increased. Transaction volume data from The Block shows the value moved on the Solana chain daily has been on a steady growth since the first week of December 2023 and continued into the first week of January 2024 to reach its highest level since December 2022.
The latest metrics reveal that the daily transaction volume which measures the throughput of SOL and tokens like USDC, SRM, RAY, and USDT on the Solana blockchain recently hit $42.72 billion on January 3, representing more than 700% of the daily volume of $5.47 billion recorded on December 3.
Source: The Block At the same time, on-chain data has revealed that Solana is increasingly becoming the preferred chain for stablecoin usage and transactions. As a result, Solana has flipped Ethereum in weekly stablecoin trading volume.
At the same time, The Block’s data dashboard shows a December transaction volume of $426.87 billion SOL moved on the Solana chain compared to $97.82 billion worth of ETH on the Ethereum chain. The Solana chain also witnessed $296.26 billion USDC volume and $10.95 billion USDT in December.
At the time of writing, January’s monthly volume now stands at $60.58 billion SOL and $60.87 billion USDC.
Source: The Block SOL Price To $200? Apart from the spike in the interest in the native SOL token, the increase in value moved on the Solana can also be attributed to interest in SOL-based meme coins. For instance, BONK, Solana’s first meme coin, witnessed significant trading volume that pushed its price to a new all-time high. MYRO, another SOL-based meme coin, is currently making impressive gains with its price doing a 169% return in the past seven days.
In terms of price action, SOL is currently on a decline as part of a general decline among altcoins. This has led to SOL’s price dropping 11.6% in the past seven days and is now trading at $90. The next support is at the $87 price level, and a break below could lead to a continued price decline in the short term.
However, SOL still shows promise in the longer term, as the monthly and daily transaction volume points to sustained interest in the chain. If this trend continues and the sentiment among altcoins flips bullish, we could see Solana price growth pick back where it left off and go to new highs.
The first resistance to overcome is close at the $97 price level before other resistances at $109, $115, and $125.
SOL price falls to $90 | Source: SOLUSD on Tradingview.com Featured image from YouTube, chart from Tradingview.com
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.