Solana was not immune to the downturn of early October. As of October 4, there are signs of resilience, but the overall trend remains bearish. While attention is mainly on price, on-chain data indicates that Solana is taking the lead over other blockchains.
Over 378,000 Tokens Minted On Solana
Throughout most of the year, the surge in meme coin activity, primarily driven by low on-chain fees and enhanced scalability, has led to a spike in Solana’s trading volume across major decentralized exchanges like Raydium.
Supporting this increase, on-chain data summarizing all activities in September 2024 reveals that more than 378,000 tokens were minted on the third-largest smart contracts platform, with a significant portion being meme coins.
Over 378,000 tokens minted | Source: @SolanaFloor via X
It’s no surprise that Solana tops the charts in token creation. Following the surge in H2 2023, which propelled SOL from approximately $20 to over $240 at the beginning of this year, developers flocked to the platform to leverage its high scalability.
In contrast to Ethereum, Solana provides low fees without sacrificing security. While reliability can occasionally be an issue, notably during peak demand times, Solana has shown considerable resilience and has not encountered any outages recently.
Solana price trending sideways on the daily chart | Source: SOLUSDT on Binance, TradingView
The launch of Pump.fun accounts for the uptick in meme coin activity. Data from Dune indicates that over 15,300 tokens were introduced through the meme coin launchpad in just the past 24 hours. However, only 256 of those tokens have successfully graduated to being listed on Raydium, a decentralized exchange (DEX).
Given the rapid release of tokens, it is unsurprising that more than 378,000 tokens entered the market during September alone.
Dominance In 3 Core Metrics But Trails Ethereum And Polygon On Volume
Furthermore, a report from CoinMarketCap highlights that the modern chain leads as the most active network in three key metrics. According to the coin tracker, Solana has the highest number of buyers, transactions, and unique wallet addresses. While this is a positive development, a significant portion can be linked to bot activity.
Solana leads in three core metrics | Source: @SolanaFloor via X
Despite leading in transactions, buyers, and unique wallets, Solana falls short of Ethereum and Polygon regarding trading volume during this time frame. Ethereum remains the largest smart contracts platform by market cap and continues to gain momentum in DeFi activity as well.
On the other hand, Polygon, which operates Polymarket, a predictions market, is generating volume in anticipation of the upcoming heated general elections in the United States.
Feature image from Canva, chart from TradingView
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