Solana has seen a significant increase in its weekly on-chain trading volumes, surpassing Ethereum in this aspect. According to a recent report by Wintermute, Solana’s trading volume rose by 50% to $51 billion, while Ethereum’s volume reached $46 billion. This shift highlights the ongoing recovery of the cryptocurrency market from recent lows.
One of the key drivers behind Solana’s momentum is the surge in meme coin activity, which now makes up 40% of its trading landscape. This increase is largely fueled by the popularity of meme coin marketplace pump.fun, which contributes to 35% of Solana’s decentralized exchange volume. However, despite the hype surrounding meme coins, only a small percentage of pump.fun wallets have generated significant profits, with just 0.76% earning $1,000 or more.
The rise in speculative trading has also led to a notable increase in token generation on the Solana network. Currently, the network captures an impressive 86% market share, up from 60% in early September. Additionally, weekly token generation has more than doubled from 45,000 to 110,000 tokens.
Meme coins have proven to be strong performers, with the GMCI’s Meme Index growing by 34% in September, closely following the 39% growth of the GMAI Index. Year-to-date, the Meme Index has surged by 140%, outpacing the GMAI Index’s 83% growth, as highlighted by Wintermute.
Analysts believe that the increased meme coin activity on Solana could potentially drive growth across the entire cryptocurrency industry. They also suggest that the current stability in crypto markets may be the calm before a storm, especially as the U.S. election approaches.
Overall, Solana’s rise in trading volumes driven by meme coin activity signals a shifting landscape in the cryptocurrency market. As meme coins continue to gain traction, it will be interesting to see how this trend impacts the broader industry and whether it leads to further market volatility in the future.