The Solana blockchain witnessed an impressive increase in its transaction volume during the month of January, according to recent data from Dune. Total transaction volume, including SOL and SPL tokens on the Solana blockchain, peaked at $951.9 billion for the month, marking a significant 30% increase over December 2023 volume, which was already at a peak of several months at the time.
This remarkable growth represents a strong improvement over the levels of activity seen in 2023 and throughout much of 2022. For example, in September 2023, Solana network transaction volume reached a low of just $40 billion. The current surge highlights the growing adoption and trust in the Solana blockchain.
Furthermore, the recovery in the price of Solana (SOL) contributed to this momentum. On Monday, SOL surpassed the $100 mark. On decentralized exchanges, an increase in trading activity was observed, particularly with WEN token pairs. Data from Dune Analytics shows that the top five DEX trading slots over the past 24 hours were dominated by stablecoin-SOL, stablecoin-WEN, and SOL-WEN pairs.
Increase in SOL price drives market liquidations
This increase in activity coincides with the recent launch of the WEN token to users of the Jupiter decentralized exchange on Solana. It will also be available to Solana Saga phone users and owners of certain Solana-based NFT projects.
As the price of SOL increased, there was also a significant increase in liquidations. Over the past 24 hours, SOL price volatility has led to substantial liquidations of short positions on centralized exchanges. Thus, totaling around US$9.9 million, with the majority of these liquidations (almost US$8 million) occurring on short positions.
This scenario is reflected in the overall cryptocurrency market, which saw more than US$79 million in short positions liquidated in the last 24 hours, contributing to a total of US$118 million in liquidations across several centralized exchanges, according to data from CoinGlass.
The increase in transaction volume and trading activity on Solana indicates a robust recovery and a growing trend of interest in blockchain, signaling a period of optimism and expansion in the cryptocurrency market.
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