Saad Ullah
Solana (SOL) hit an all-time high with over 5 million daily active addresses, despite challenges in the memecoin sector.
Solana (SOL) Reaches Record-High Daily Active Users
Solana's blockchain network has reached a new milestone, recording the highest number of daily active addresses in its history, the blockchain surpassed five million daily active users on September 10, setting a record for the most users in a 24-hour period. Despite the notable surge, Solana (SOL) remains at a low value compared to earlier this year, with a single coin currently trading at around $132.
The blockchain’s closest competitors fell far behind, with the second-highest network barely reaching 2.5 million daily active wallets. This record highlights Solana’s growing influence in the blockchain space, even amidst fluctuating prices and decreased activity in other sectors.
SOL Memecoin Sector Declines Despite Active Address Growth
Although Solana celebrated its network activity, its memecoin sector has faced challenges. Notably, Pump.fun, a memecoin launchpad on Solana, saw a significant decline in its revenue, with an 80% drop since its peak in late July. This decline has led to reduced overall fees on the Solana network, signaling a correlation between memecoin activity and Solana’s revenue generation.
General SOL prices have also seen a downward trend since July, mirroring the slump in memecoin-related revenue. This has raised concerns about whether the recent memecoin craze was sustainable or merely a temporary trend.
Pump.fun’s Impact on Solana (SOL) Raises Concerns
The rapid rise and fall of Pump.fun has led to debates within the crypto community about its long-term impact on Solana. The platform was one of the fastest-growing decentralized finance (DeFi) protocols, reaching $100 million in revenue within just seven months. However, as activity on Pump.fun slows, some are questioning whether its success has done more harm than good.
During its peak, Pump.fun enabled developers to launch over 500,000 tokens in a single month, causing a flood of memecoins on Solana-based exchanges like Raydium. While some investors made significant profits, others saw their capital wiped out, sometimes losing 99% of their investments in seconds. The volatility and speculative nature of these tokens led to concerns from key figures in the crypto world, including Ethereum co-founder Vitalik Buterin.
What’s Next for Solana (SOL) and Pump.fun?
Despite these concerns, Pump.fun remains active and continues to launch new memecoins on the Solana network. However, a recent analysis by crypto.news has found that the oversaturation of the memecoin market has led to weak returns for most traders. Less than 1% of those trading memecoins have earned more than $1,000, reflecting the highly speculative and risky nature of these investments.
While Solana's blockchain has shown remarkable resilience with its record-breaking daily activity, the future of its memecoin sector remains uncertain. As the network evolves, it will be important to monitor whether Solana can maintain its user growth while addressing the challenges posed by its memecoin ecosystem.
Saad Ullah
