The well-known Solana (SOL) blockchain network, which is home to an active memecoin and web3 community, has seen increased attention prior to Donald Trump’s hypothetical second inauguration as the 47th U.S. President. At the time of this writing, this large-market-cap altcoin boasts a valuation of approximately $158 billion, and it recorded the most significant increases among the top ten altcoins during the past week.
Based on current market information, the Solana token experienced a significant increase of approximately 41% last week, reaching around $267 on Monday, January 20, during the afternoon hours in London. This well-supported cryptocurrency also saw a substantial jump of nearly 45% in its average daily trading volume, averaging roughly $36 billion.
Consequently, Solana entered price discovery after hitting a new all-time of about $293 on Sunday.
Solana Network Fails Again in Dire Moments
Over the last two years, an extraordinary surge in the use of the Solana network has frequently caused service interruptions. Even after the 2024 upgrade of the Solana network, up to version 1.17.20, various Decentralized Finance (DeFi) protocols on Solana, chiefly Phantom Wallet, faced downtime due to a massive surge in new users.
In the last day, the Phantom digital wallet handled approximately $1.25 billion worth of swapped assets across 10 million transactions. Remarkably, while the Solana network typically manages around 258,000 transactions every minute, the Phantom wallet specifically encountered a staggering increase of over 8 million transaction requests each minute.
As a result, some users of Solana (SOL) recently faced significant increases in transaction fees, exceeding 120% within the last day, along with slower transaction processing times.
The Phantom wallet sincerely regrets any inconveniences experienced today. Your understanding and patience is greatly valued while we diligently work on enhancing our system to efficiently manage larger volumes.
The massive flow of FOMO traders has resulted in a huge congestion.
Market Outlook
The Solana network is predicted to continue expanding significantly over the next few years, primarily due to alterations in cryptocurrency policies during Donald Trump’s term. Notably, for the first time since its launch, the total value locked (TVL) on the network has reached a record peak of approximately $11.64 billion.
The decision to integrate Solana by Donald Trump could lead to extraordinary expansion over the next few years. Furthermore, the introduction of the TRUMP token, a meme coin with a market cap of approximately $10.79 billion and a daily volatility of 13.1%, has garnered around one million on-chain holders in merely 48 hours.
The “MELANIA” token, a meme coin with a combined USDC liquidity pool exceeding $233 million, has amassed over 442,000 on-chain investors. This digital asset exhibits a 24-hour volatility of 51.8% and boasts a market capitalization of approximately $1.69 billion, with a trading volume of around $6.58 billion within the last 24 hours.
Over time, it’s crucial for the Solana network to boost its transaction processing speed beyond Visa Inc’s 65k transactions per second (TPS) if it wants to keep pace with Ethereum in the DeFi market. Furthermore, Solana needs to expedite the development of its layer two scaling solutions to handle the rapid growth expected from its memecoin community.
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2025-01-20 13:46