In A Nutshell:
Solana's non-vote transactions reached a seven-day moving average (7DMA) of 46 million, nearly doubling from April 2024, driven by the booming "memecoin" economy. Despite increased network activity, SOL’s market capitalization remains 20% lower than in late April, highlighting a disconnect between transaction volume and market valuation.Over the past several weeks, the Solana network has experienced a significant surge in activity. The seven-day moving average (7DMA) of daily non-vote transactions reached 46 million, the highest since January 2022, nearly doubling from a low of 21.9 million transactions in late April 2024.
Non-vote transactions include all network activities not related to validator voting, such as transfers, smart contract interactions, and decentralized application (dApp) usage. This increase is largely driven by the booming "memecoin" economy within Solana, with platforms like pump.fun contributing significantly.
Despite the rise in transactional activity, the market capitalization of SOL is $67 billion, 20% lower than in late April and over 25% below its all-time high in early April, according to CoinGecko. This discrepancy between the volume of non-vote transactions and SOL’s market capitalization suggests the market has not fully reflected the increased network activity.
The Solana network’s 7DMA shows 1.45 million active addresses per day, with each user averaging over 30 transactions daily, compared to Ethereum’s average of two transactions per active address per day.
This gap between transaction volume and SOL’s market capitalization raises questions about market perception. It suggests that the market might not yet fully appreciate the increased network activity or views the surge in transactions, possibly driven by automated bots or the "memecoin economy," as not indicative of genuine user adoption and utility.
Additionally, the sustained high levels of activity highlight Solana's improved infrastructure, capable of handling a large number of transactions smoothly. This is a notable improvement from two years ago when high activity levels often caused network outages.
