Solana Transaction Volume Breakout Fueled By This Factor

Solana Transaction Volume Breakout Fueled By This Factor

Solana (SOL) has seen a laudable growth in its transaction volume metric. Per the experienced growth, this metric peaked at around $224 billion in a single day. It is worth noting that SOL is trading at $159.82 while its market cap is currently at $75.27 billion. As observed, its on-chain transfer level almost tripled its entire market cap as of writing.

Major Basis For Transaction Boost

According to Glassnode, this transaction boost is linked to a high-activity wallet using multiple accounts. For context, this wallet behaves like an arbitrage bot, ramping up activity in early October. It is believed to be responsible for the recent fee increases that has formed the basis of many discussions these past weeks.

For the last seven months, Solana has recorded some sideways movements in complement to the transaction trend. It has struggled extensively to stay above the $200 psychological mark. Based on a recent SOL price prediction, experts are speculating the possibility of Solana to hit $200 before the year comes to an end. However, there is optimism that the upcoming US election may turbocharge the market much faster.

Hence, a potential SOL price rally may get closer than anticipated. Before now, conditions looked right in the SOL ecosystem. Its Total Value Locked (TVL) went from $4.77 billion to $7.24 billion within six weeks, marking a 54% increase. Also, the number of new addresses in Solana recorded a sharp rise from 3 million to 5.9 million in October. This amounted to a 96% surge.

In the meantime, the crypto market generally appears sluggish. Bitcoin’s capacity to reach a new All-time-high (ATH) could push Solana to reach for greater gains.

Solana Ecosystem, Challenges, and New Markets

Recently, a smart SOL whale sold massive amounts of coins and made remarkable profits on his holdings. Based on the amount initially held, the bag of SOL is expected to contain about 0.5 million units of the crypto. The stash, sold to leading cryptocurrency exchange Binance, was worth approximately $44 million at the time of sale.

Meanwhile, a few investment asset management firms are trying to get the United States Securities and Exchange Commission (SEC) to give its approval to their Solana ETF filings. Canary Capital, VanEck and 21Shares have submitted their S-1 registration statements for the offering.

The outcome of their application would go a long way in influencing Solana’s price and future outlook. While Solana still has its outage challenges, these ecosystem updates is helping to prop the price of the coin.

The post Solana Transaction Volume Breakout Fueled By This Factor appeared first on CoinGape.


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