- SOL recently surged past $120 for the first time since May 2022.
- SOL’s exceptional performance has led to the network experiencing heightened activity.
- Particularly, DEX volumes and network transactions have substantially increased on Solana.
Solana has been performing exceptionally well this quarter, consistently registering massive gains while the overall crypto market stalls in its recovery. In December alone, SOL surged 114%, securing its position as the leading gainer in the market.
As Solana traders enjoy flourishing market conditions, the network’s outstanding performance has attracted considerable attention, allowing the protocol to mark new highs. At the same time, it prints a flurry of green candles on the charts.
Solana Network Activity Soars
Solana network activity has experienced a remarkable surge since the token printed massive gains for its holders. Whether it’s DeFi, NFT Sales, or on-chain transactions, the network has performed remarkably well, often surpassing its rival, Ethereum, in various metrics.
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According to SolScan, Solana’s non-vote transactions on the network have reached a new yearly high, with a seven-day moving average of 34 million transactions. Non-vote transactions typically refer to the movement of SOL between different Solana accounts, signaling a notable increase in user activity on the layer-1 network.
Subsequently, the rise in network activity has also led to exponential growth in liquidity on Solana’s largest decentralized exchanges (DEXes), allowing the network to narrow the gap with Ethereum. Solana DEX volumes have increased by 26% in the past week alone, reaching approximately $6 billion, compared to $8.5 billion on Ethereum DEXes.
Experts attribute the rise in network activity and DEX volumes to the ongoing frenzy around the BONK memecoin and the success of DeFi protocols Pyth, which recently airdropped its native tokens worth $87 million.
On the Flipside
- At the time of writing, Solana’s DEX TVL stood at $405 million, while Ethereum led with a DEX TVL of $5.7 billion.
- Despite its surge, the defunct exchange FTX still holds millions in SOL tokens, most of which will hit the market in 2025.
Why This Matters
Solana’s incredible performance this year has positioned the network as a formidable threat to its competitors. This achievement may bolster confidence among its holders and attract additional market participants to invest in its token.
Read more about SOL’s Christmas Pump:
Solana Enjoys Christmas Miracle Pump While Market Stalls
Read more about the SEC’s final deadline:
SEC Calls For Final Changes as Potential ETF Approval Looms
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