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Solana's Resilience: Meme Coins Test, Stablecoins Surge

Coin WorldFriday, Jan 31, 2025 10:19 am ET

1min read

Solana, a high-performance blockchain platform, has demonstrated its resilience and scalability amidst the recent launch of two meme coins, $TRUMP and $MELANIA. Despite the significant trading activity and network congestion caused by these new tokens, the Solana blockchain remained operational, highlighting its ability to handle increased traffic.

The launch of $TRUMP and $MELANIA on January 17th and 18th, respectively, led to a surge in trading volume and market capitalization. $TRUMP quickly reached a market cap of $14.5 billion, while $MELANIA surpassed a $5 billion market cap. This influx of activity resulted in some slowdowns on the Solana network, primarily at the decentralized application (dApp) level. Chris Chung, CEO of Solana swap platform Titan, attributed the congestion to dApps struggling with increased traffic rather than issues with the blockchain itself.

Platforms like Phantom and Jito Labs experienced service disruptions due to the soaring transaction requests. Arbitrage bots also faced challenges in stabilizing prices, leading to increased volatility. However, the Solana blockchain itself remained stable and functional throughout the event.

Looking ahead, Solana's future scalability is set to be enhanced by Firedancer, a new validator client from Jump Crypto. Firedancer is designed to improve transaction throughput and prevent network outages. Its launch on Solana's mainnet this year aims to process up to 1 million transactions per second, significantly faster than traditional payment networks like Visa.

In addition to its resilience during the meme coin storm, Solana has also seen a significant increase in stablecoin supply. Since mid-January, the stablecoin supply on Solana has jumped by 73%. A report by CCData on January 30th showed the supply on SOL of stablecoin at $11.1 billion, a surge of 112% since the start of the month. This growth has positioned Solana as the third-largest blockchain network in terms of stablecoin supply.

The SOL daily price chart indicates that the altcoin rebounded from a dip into the bearish region of the Bollinger Bands and remains in the bullish region. With prices holding above the 20-day Simple Moving Average, SOL could potentially reach $250. At press time, CoinMarketCap data shows that the altcoin is trading at $237

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