Solana’s Network Usage Skyrockets: On-Chain Transfer Volume Reaches New Height

Solana continues to demonstrate its robust stance in the broader blockchain sector following a recent significant increase in on-chain activity, with transaction volumes and user engagement rising massively across its network. Generally, SOL’s market performance may benefit from this substantial growth, which could indicate persistent network scalability and health.

On-Chain Transfer Volume On Solana’s Blockchain At A New All-Time High

A recent report from Glassnode, a world-leading on-chain and financial data platform, reveals that Solana has experienced a remarkable surge in the network’s usage. The network’s activity skyrockets as its on-chain transfer volumes hit new levels, suggesting heightened demand and broader acceptance within the ecosystem.

This increased activity shows that developers and users are becoming more interested in utilizing the network’s low-cost, high-speed transaction capabilities, among others. It could also spark renewed confidence in the long-term scalability and market potential of Solana, further cementing its position as a leading blockchain network in the dynamic world of cryptocurrencies.

According to the financial platform, the volume of on-chain transfers on Solana increased dramatically in the past day, reaching a peak of almost $224 billion. The surge in transfer volume represents nearly 3 times the overall market capitalization of SOL in a single day, which is currently valued at $76 billion.

Data from Glassnode shows that the notable uptick was majorly driven by a particular wallet address with a lot of activity that utilized multiple accounts. Furthermore, the platform pointed out that the wallet, which might be a bot used for arbitrage purposes began to increase the network’s activity and was probably the reason for the rise in transaction fees that was widely discussed in the community.

As Solana’s on-chain activity continues to improve, investors and traders are closely watching for more developments on the network that could impact the price of SOL, leading to a rally in the upcoming months.

SOL’s Active Addresses Reach A Record High Amidst Growing Adoption

Active addresses on the Solana blockchain have also witnessed significant growth alongside the rise in on-chain transfer volume. According to current data, the number of active addresses in October hit a record high of 123 million, reflecting a more than 42% growth in comparison to its performance in the month of September.

It is important to note that there were just 12.7 million SOL’s active addresses at the start of the year. This spike was due to an increase in meme coin trade, ultimately fueled by recent activity on decentralized exchange Raydium and apps like Pump.fun. The growing use of SOL for decentralized apps (dApps), Non-Fungible Tokens (NFTs), and gaming are not left out, which are all seeing huge traction on the blockchain.

Featured image from iStock, chart from Tradingview.com