Originally published on: November 20, 2024
Solana, a prominent blockchain network, has recently experienced a monumental surge in its onchain transfer volume, reaching an unprecedented $318 billion. However, market intelligence firm Glassnode has shed light on a significant aspect of this activity – it is predominantly carried out by automated bots.
Glassnode highlighted in a recent post on the subject that Solana’s transfer volume for its native token SOL surged to a staggering $318 billion on November 16th, surpassing its market capitalization of $112.5 billion. The network also witnessed a substantial increase in the number of active addresses, reaching 22 million.
Despite these impressive metrics, Glassnode pointed out that both the mean and median transaction volumes experienced a decrease during this period. This discrepancy raises doubts about the authenticity of the growth seen on Solana, as a genuine increase would typically be reflected in these average figures.
The heightened activity on Solana has also led to a surge in fees and network revenue, with daily revenue hitting a record high of nearly $6 million on November 20th. Additionally, Solana participants paid a total of $7.63 million in transaction fees. The network achieved its highest-ever decentralized exchange (DEX) volume of $6.93 billion, with Raydium accounting for a significant portion of the trading activity.
However, further analysis revealed that a considerable portion of the trading volume on Solana may be driven by bots and other artificial trading activities. Liquidity pools on the Raydium protocol displayed discrepancies where pools with minimal liquidity generated unexpectedly high trading volumes.
Despite concerns surrounding artificial inflation of network activity, investors remain optimistic about Solana’s future prospects. Analysts suggest that SOL could potentially reach the $400 mark, with promising technical indicators supporting this bullish outlook.
Seasoned traders anticipate further price appreciation for Solana, with short-term targets set around $275. The network’s recent performance indicates the beginning of a potentially larger bull market cycle, reflecting an upward trend in price and market cap.
Investors should exercise caution and perform thorough research before making any investment decisions. Stay informed and explore more articles like this to stay ahead in the dynamic world of blockchain technology and digital assets.
