Solana monthly transaction volume hits multi-year high

There has been a significant increase in transaction volume on the Solana blockchain during the month of January, according to The Block’s Data Dashboard.

The transaction volume of SOL +9.36% and SPL tokens on the Solana blockchain has surged to $951.9 billion for the month of January, and there are still almost two days remaining in the month. The gains represent a 30% rise in economic throughput on the network from December’s volume of $735.8 billion, which was a multi-month high at the time.

The rise in transaction activity on the blockchain is significantly above levels seen in 2023 and for most of 2022. For instance, in September 2023, Solana network transaction volume hit a low of $40 billion.

Solana price recovers

On Monday, Sol rose back above the $100 mark. On decentralized exchanges, the uptick in trading activity seems to have been driven by WEN token pairs. According to data on Dune Analytics, the top five DEX trading slots in the past 24 hours are made up by stablecoin-SOL, stablecoin-WEN, and SOL-WEN pairs.

Data shows that after stablecoins, WEN and SOL pairs make up most of the Solana-based DEX volume. Image: @ilemi, Dune Analytics.

This week, WEN was airdropped to users of Solana’s Jupiter decentralized exchange. The airdrop was also open to users of the Solana Saga phone, and owners of certain Solana-based NFT projects.

Solana has risen by almost 8% in the past 24 hours. Image: The Block.

Liquidations spike after Solana uptick

Sol has been the best-performing major altcoin in the past 24 hours, with the token experiencing an increase of almost 8%, changing hands for $104.44 at 9:22 a.m. ET, according to The Block’s Price Page.

Over the past 24 hours, SOL price volatility has led to a substantial liquidation of short positions on centralized exchanges. The volatility resulted in the liquidations of around $9.9 million, with the vast majority (almost $8 million) being shorts.

The overall crypto market saw over $79 million of liquidated short positions in the last 24 hours, contributing to a total of $118 million in liquidations across various centralized exchanges, according to CoinGlass data.

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