Solana activity flips Ethereum amid memecoin craze, even as txs fail

The Solana network has notched consecutive record daily trading volumes over $3.5 billion due largely to memecoin hysteria. However, the network has struggled to keep up.
The Solana network has notched consecutive record daily trading volumes over $3.5 billion due largely to memecoin hysteria. However, the network has struggled to keep up.

Solana network activity surpassed Ethereum over the weekend amid a scramble for Solana-based memecoins — causing the network to struggle to keep up.

On March 16, Solana’s total trading volume soared past Ethereum, reaching $3.52 billion and beating out the daily volume on the Ethereum network by more than $1.1 billion, per DefiLlama.

Solana reached a new record of $3.79 billion in trading volume on March 15. Source: DefiLlama

However, the Solana network struggled to keep up with the influx of activity, with many users across X complaining about frequent instances of failed or missing transactions.

According to Solana Validator data, cited by pseudonymous user “Dagnum” on X, Solana’s ping time ran between 20 and 40 seconds at 8 pm UTC on March 16, resulting in approximately 50% of transactions failing for around 20 minutes.

Congestion on the Solana network also reached new highs. Source: Dagnum on X

The huge uptick in Solana network activity was driven by an outsized appetite for new memecoins. On March 14, degens began piling into a new memecoin called Book of Meme (BOME), which rallied from near-zero to a market capitalization of $1.45 billion in just 56 hours.

Another memecoin dubbed “$NAP” (NAP) also garnered significant attention from traders, rallying from a market cap of around $20 million to over $330 million in less than 18 hours.

Related: Trader fumbles $1M bag after selling a Solana memecoin early

The price of Solana (SOL) also rallied alongside the huge uptick in network activity, with SOL currently trading at $200, up 7.6% over the last week and 38.4% in the last month, per CoinGecko data.

Solana’s market capitalization also notched a new all-time high. Source: CoinGecko

Solana’s recent gains have also allowed the coin to overtake Binance’s BNB (BNB) coin to become the fourth-largest cryptocurrency by market cap at $88.5 billion.

Due to an overall increase in the total supply of Solana tokens, the network’s market cap is currently nearly $12 billion above its former top market cap of $76.5 billion — which it reached on Nov. 7, 2021.

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