As Solana activity soars thanks to memecoins, its market cap remains grounded

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Solana News

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The disconnect between transaction volume within the network and the market capitalization of SOL raises questions.

Over the past several weeks, we’ve noticed a notable surge in activity within the Solana network. The seven-day moving average of daily non-vote transactions reached 46 million, its highest level since January 2022. This marks a near-doubling from its most recent low of 21.9 million transactions in late April 2024.

Despite this rapid increase in transactional activity over the past three months, the market capitalization of SOL stands at $67 billion at the time of writing. This is approximately 20% lower than its value in late April and over 25% off its all-time high at the beginning of April, according to CoinGecko.

According to its 7DMA, the Solana network boasts 1.45 million active addresses per day, indicating that the average active user conducts over 30 transactions daily. This is a stark yet expected contrast to Ethereum, where the average active address transacts just twice a day. The disconnect between transaction volume within the network and the market capitalization of SOL raises questions, specifically whether the market is not yet fully appreciating the increased activity on the network or whether the market considers that the influx of transactions might be driven by automated bots or the “memecoin economy” do not necessarily reflect genuine user adoption in terms of utility.

 

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