Solana Surges Amid Meme Coin Storm, Eyes 1M TPS with Firedancer

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

1min read

Solana, a high-performance blockchain platform, has weathered the storm of the recent meme coin craze, demonstrating its resilience and commitment to future scalability. The launch of two new meme coins, $TRUMP and $MELANIA, associated with the U.S. President and First Lady, caused a surge in trading activity on the Solana network. Despite the congestion, the blockchain itself remained stable, with bottlenecks primarily occurring at the decentralized application (dApp) level.

The TRUMP meme coin quickly gained traction, reaching a market cap of $14.5 billion and over $26 billion in trading volume. MELANIA followed suit, surging past a $5 billion market cap. This intense trading activity led to some slowdowns on the Solana network, with platforms like Phantom and Jito Labs experiencing service disruptions. Arbitrage bots also struggled to stabilize prices, contributing to increased volatility.

Solana has a history of dealing with outages, having experienced 14 in 2022. However, the platform has since improved its scalability and resilience. Looking ahead, a key development for Solana's future scalability is Firedancer, a new validator client from Jump Crypto. Designed to enhance transaction throughput and prevent network outages, Firedancer is set to launch on Solana's mainnet this year, aiming to process up to 1 million transactions per second.

In addition to its scalability efforts, Solana has 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 shows 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 reach $250. At press time, the altcoin is trading at $237.30, down 1% in the past day. The RSI indicator is at 54.77, suggesting higher prices for the cryptoc

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