Solana’s SOL price saw a notable setback during the first week of the new year, falling 10% to below $100. This decline represents a significant rebound from its recent peak of $115 on January 2.
However, its ecosystem continues to thrive, seeing rising transaction volumes and increasing dominance of stablecoins.
Low price of SOL
Last year, Solana emerged as one of the best-performing cryptocurrencies, showing an impressive rise of almost 1,000%. While most of this growth occurred during the latter part of the year, it coincided with the resurgence of Solana’s DeFi sector and increased network activity.
Many observers expected this positive trend to extend into the new year, supported by early indicators. As of December 31, SOL was trading at $103, quickly rising to $115 by January 2. However, the altcoin price saw a correction on January 3, due to a report that the US Securities and Exchange Commission may reject all pending spot Bitcoin applications for exchange-traded funds.
Since then, prices have continued to decline, with SOL falling to a low of $92 earlier today. Solana has since recovered to $95.35 as of press time.
Read more: Is Solana (SOL) ready to surge 50x in 2024?
It is worth noting that this decline is in line with the broader decline across several major cryptocurrencies, including Ethereum, XRP, and Cardano. The prices of these digital assets fell by 3%, 9%, and 14%, respectively.
The Solana network is thriving
Despite SOL’s volatile price performance, the Solana network is seeing increased activity. Daily transaction volume on Solana has risen to more than $40 billion, the highest transaction volume for the network since October 2022.
“Solana’s daily transaction volume reaches a new record high of over $40 billion – the highest since October 2022! Economic activity for standard SPL tokens has also peaked, not seen since late 2022,” IATH Studio noted.
This increase in Solana transaction volume stems primarily from coin trading. It is worth noting that Solana-based memecoins, such as BONK and WIF, have received attention from the cryptocurrency community thanks to their impressive price performance.
Read more: Alert: Deepfake Anatoly Yakovenko video targets Solana (SOL) holders.
Data from Artemis also shows that Solana is emerging as a dominant force in stablecoin transactions due to its cheap fees. As of January 1, the volume of Solana-based USDC transfers exceeds the volume of USDT transfers on the TRON blockchain by more than 40 billion.
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