Solana User Base Skyrockets To Over 123 Million, Riding The Memecoin Wave

In October, the Solana blockchain registered 123 million active addresses. It has grown 42% since September and has risen dramatically from 12.7 million addresses at the start of the year. Latest data shows Solana’s steady rise in the crypto sector. The latest growth is due, in part, to memecoins, which have increased trade and user interest.

The memecoin craze isn’t the only factor in Solana’s rapid growth. With a total value locked (TVL) of $5.7 billion, the decentralized finance (DeFi) ecosystem made major strides in the third quarter of 2024.

With a 26% quarterly increase, Solana became the third-largest DeFi network surpassing Tron. Much of this growth comes from innovative platforms like Kamino.

Memecoins Drive Unprecedented Trading Volumes

Key to the recent surge in trade on Solana is platforms including Pump.fun, a memecoin generator, and Raydium, a decentralized exchange (DEX). Pump.fun brought in $30.5 million in October; Raydium recorded around $30 billion in trading activity.

Particularly those looking for low-cost, high-frequency trades—an area where Solana’s infrastructure shines against more expensive networks like Ethereum—the activity generated by this memecoin has drawn more users to the network.

Still, several business leaders are wary. Though memecoins have attracted a lot of attention in Solana, Eden Au, research director at The Block, pointed out that their long-term consequences are yet unknown.

Au posits that changing market dynamics and shifting user preferences may impede current progress if fresh utility and attractiveness do not arise beyond memecoins.

Solana DeFi Ecosystem Flourishes

In addition to the memecoin excitement, Solana’s DeFi network has experienced significant growth. Solana’s DeFi industry, with a substantial $5.7 billion in total value locked (TVL), experienced a 26% growth in Q3, reflecting significant expansion propelled by platforms such as Kamino.

Renowned for its loan and trading innovations, Kamino implemented new services that captivated consumers and enhanced Solana’s position in the DeFi ecosystem. Integrations like PayPal’s PYUSD have strengthened Solana’s stablecoin ecosystem, making its programmable transfer features more appealing.

Over the course of the past month, the value of Solana’s native token, SOL, has increased by around 12%. It is currently selling at $162, figures from Coingecko show. Market observers are currently looking at a resistance level of $185.

It is possible that the token’s price will increase even further if it is able to break through this barrier; the expected price targets range from $220 to $240. If SOL is able to maintain its consistency and make the most of its current developments, then the next several weeks will be the determining factor.

Featured image from MoneyCheck, chart from TradingView