Coinbase Increases Support for Solana with SPL Token Integration

by

Coinbase Global Inc (NASDAQ: COIN), a well-known cryptocurrency exchange, made an announcement via X platform that they are integrating Solana Decentralized Exchange (DEX) into their system, allowing users to trade tokens from the Solana Program Library (SPL) on Coinbase Wallet.

Beyond Coinbase, Solana SPL Tokens Receive Mass Support

On the Solana blockchain, SOL serves as the native token. In contrast, SPL is the token standard created specifically for this ecosystem, akin to Ethereum‘s ERC-20. Crucial for smooth interaction with various applications and platforms built on Solana, SPL tokens play an essential role in nurturing the ecosystem’s expansion and advancement over time.

With this integration, Coinbase users can now trade over 50,000 tokens on Solana. Simultaneously, it signifies Coinbase’s growing commitment to Solana and its community. Previously, Coinbase had already backed other Solana offerings, such as its staking program.

Increasing support for Solana and SPL tokens by @Coinbase❤️‍🔥

— Solana (@solana) April 16, 2024

In addition to Coinbase, other crypto projects have recently added support for SPL tokens. For instance, Trezor, a prominent hardware wallet for Web3.0, announced its compatibility with SOL and SPL-standard tokens on its platform in December. The increasing popularity of SPL tokens has likely influenced Solana’s decision to introduce “token extensions” based on the SPL standard.

Normally, token extensions provide businesses new to blockchain with a wide range of tailor-made solutions for handling complex token features. This particular extension aims to transform the way developers, corporations, financial sectors, and native Solana development groups handle sophisticated token capabilities.

In recent weeks, there’s been a significant increase in the daily issuance of new SPL tokens on the Solana blockchain, with approximately 7,800 tokens being minted each day. This growth not only signifies heightened engagement and activity within the Solana community but also fosters innovation and advancement for the network as a whole.

Investors’ shift from using various wallets to hold SPL tokens signifies their growing trust and excitement for Solana’s offerings.

Solana Seeks Solution to Network Congestion

The addition of Coinbase to Solana occurs as the protocol grapples with increasing traffic issues, which could potentially disrupt its functioning. Recently, this network has experienced heavy congestion.

The current traffic jams in the Solana network are thought to be fueled by the recent hype surrounding memecoins, causing an influx of activity. According to Austin Federa, Solana Labs’ Head of Communications, the main issue is that the software systems being used can’t handle the heavy traffic they’re facing.

Based on information from the cryptocurrency analysis tool Dune, approximately 75% of all non-voting transactions encountered issues and did not go through on the Solana blockchain on April 4.

The Solana team is exploring several possible options to address the network’s congestion issue. Federico confirmed that various developers have been working diligently to find a solution. As a result, Anza, one of the developers behind the Agave validator client for Solana, unveiled an update, specifically version v1.18.11 on devnet, designed to ease the network’s congestion problems.

Solana places importance on Stake-Weighted Quality of Service (SWQOS) as part of its efforts to address congestion problems. These new approaches aim to enhance the performance of the network following its recent major upgrade on the mainnet.

The Solana ecosystem needs these improvements to effectively handle the large number of users Coinbase will bring over.

Read More

2024-04-17 15:29