According to Bloomberg, trading volume on Solana's blockchain reached its highest level in over two years on March 15, driven by the popularity of memecoins such as Slerf, Boom of Meme, Snap, and Dogwifhat. Solana's low fees have made it a top choice for launching new memecoins, attracting more users to the network. To participate, users typically need to download a Solana wallet like Phantom and use the SOL token for transactions. The price of SOL has nearly doubled this year, surpassing $200 on Monday for the first time since late 2021, raising concerns about the sustainability of the rally.
"There's no way to know how sustainable this memecoin activity is," said Jiang, who believes consumers may eventually explore Solana nonfungible tokens and games. Pantera has been closely monitoring the trading activity on Solana, which has primarily occurred on decentralized exchanges such as Jupiter, Raydium, and Orca. Launched in 2020, Solana is a competitor to the Ethereum blockchain and supports various crypto-centric apps.
The number of monthly active addresses on the network exceeded 20 million in each of the past three months, following a period of reduced activity due to FTX's bankruptcy, according to data from The Block Research. Jacob Joseph, a research analyst at CCData, noted that Solana's decentralized exchanges "have experienced a dramatic increase in volume over the past few weeks." Furthermore, Solana has seen a surge in retail activity, with user activity on the blockchain surpassing that of Ethereum. In recent days, leading Solana DEXs have collectively outperformed top Ethereum DEXs like Uniswap, partly due to the ongoing memecoin frenzy.
