• The Solana meme coins market cap has risen to over $5.6 billion and a daily average trading volume of around $3 billion, thus risking possible network overload. 
• Solana developers have blamed trading bots that have increased on-chain activity on the fast-growing layer one blockchain.

Solana (SOL) network, a top-tier layer one (L1) blockchain for the web3 ecosystem with more than $4.18 billion in Total Value Locked (TVL) and nearly $3 billion in stablecoins market cap, has grown to a major smart contract hub. Thousands of web3 smart contracts are deployed on the Solana network on a daily basis, thus helping democratize the digital asset industry. 

As Crypto News Flash previously reported, the Solana ecosystem has dethroned Ethereum in DeFi activity fueled by the meme coin frenzy. Consequently, the large-cap altcoin, with a fully diluted valuation of about $108 billion and an average daily trading volume of around $8.5 billion, is well positioned for further gains in the ongoing crypto bull market.

Solana Meme Coin Frenzy at Hand

The Solana ecosystem has significantly benefitted from the ongoing meme coin frenzy, as more investors flock to the global casino. As of this writing, the Solana-based meme coins have risen to $5.6 billion and an average trading volume of $3 billion, thus dominating the altcoin market with crazy speculation.

Some of the top-rated Solana-based meme coins include dogwifhat (WIF), Bonk (BONK), BOOK OF MEME (BOME), Slerf (SLERF), and Myro (MYRO), among others. According to Solana co-founder Anatoly Yakovenko in a recent interview, the rise of meme coin mania is a huge welcome for the ecosystem as it will help point out the network weaknesses for sustainable future development.

“To me, it’s just a bizarre thing, I think, of people being terminally online and kind of having nothing better to do,” Yakovenko noted,

Impact on the Solana Network

As Crypto News Flash previously reported, the Solana network has experienced significant pressure for the tangible increase in web3 activity, more so fueled by meme coins. Earlier this year, the Solana network experienced an outage that lasted for a few hours, thus interfering with the smart contracts. 

The rise of the Solana-based meme coins has now resulted in network congestion, thus increasing the overall rate of failed transactions. Although the Solana network has not added the transaction fees, it is now a huge gamble to enable a smart contract on the Solana ecosystem. For instance, a meme coin developer recently ended up burning the presale tokens worth around $10 million due to network congestion. 

Nonetheless, Yakovenko has indicated that Solana’s traffic problem has been heavily exaggerated on social media as the failed transaction tags have been caused by trading bots.

SOL Price Aims for New ATH

Amid the heightened on-chain activity on the Solana network, SOL price has significantly benefited with bullish sentiments. According to the latest market data, SOL price is up more than 33 percent in the past two weeks to trade around $189 on Thursday, March 21, 2024.

If the Solana network continues to register heightened on-chain activity, then it is safe to assume SOL price will retest the all-time high in the near term.

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