Layer-1 (L1) blockchain Solana has seen a significant spike in activity, driven by the rising popularity of newcomer meme coins TRUMP and MELANIA.
This surge has led to an all-time high in network fees and revenue as demand for transactions on the blockchain reaches a new high.
Solana Fees and Revenue Rocket to New Highs
The increased demand for TRUMP and MELANIA has led to a rally in Solana’s user activity in the past few days. As more users and traders flock to the chain to capitalize on the hype surrounding these meme coins, its transaction fees have soared, contributing to a record-breaking revenue high.
According to DefiLlama, Solana’s daily network fees total $36 million on Monday, a 176% increase from the previous day’s $13 million. Likewise, the revenue derived from these fees is $18 million, up 200% from Sunday’s $6 million.
However, the surge in activity comes with its own set of challenges. Amid heightened trading volume, a wave of sell-offs has begun to impact SOL’s price. After the initial spike to an all-time high on January 19, the coin has started to shed some of its recent gains.
As of this writing, SOL is trading at $263.69, down 10% from its peak price. According to Coinglass data, this price drop prompted many futures traders to open short positions against SOL during Monday’s early Asian trading session.
This bearish sentiment was evident in the coin’s funding rate, which fell to -0.09%. Negative funding rates mean short position holders are paying long position holders, reflecting a bearish outlook.
However, market sentiment has shifted. SOL’s funding rate has now risen to 0.0059%, indicating that futures traders are starting to take long positions on the altcoin.
SOL Price Prediction: Coin Could Reach New Heights if Bullish Sentiment Holds
If this bullish sentiment persists, SOL’s price could recommence its upward trend and revisit its all-time high of $295.83. It could flip this level into a support floor, propelling it to new all-time highs.
However, if selling pressure gains momentum, SOL’s price could continue its decline toward $239.39.
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