Solana (SOL) Skyrockets 335% in Intriguing Bridge Activity Spike

Galaxy Research highlights an intriguing trend on the Solana blockchain: Daily bridged volume to Solana has increased 335% over the past seven days.

According to Galaxy Research, increased bridge activity corresponds with one of Solana’s largest token airdrops ever, the Jupiter airdrop. The majority of bridged funds have come from Ethereum, it said.

Over the past 7 days, daily bridged volume to Solana has increased 335%.

Increased bridge activity coincides with one of the largest token airdrops ever on Solana, the Jupiter airdrop. The majority of bridged funds have been coming from Ethereum. pic.twitter.com/jXdrjUprar

— Galaxy Research (@glxyresearch) February 2, 2024

On Wednesday, Jupiter, the network’s primary DEX aggregator, distributed the largest Solana-based airdrop to date. One billion tokens, or 10% of the entire supply, were airdropped to Jupiter users before Nov. 2, 2023. The airdrop was a huge stress test for the Solana network, with doubts about its ability to handle such a large number of transactions.

A total of 40% of the supply will be airdropped to users in three further phases over the next year (precise schedule to be determined). An additional 10% is designated for community contributors and grants.

The remaining 50% of the supply will be allocated to Jupiter team members, strategic reserves and liquidity provisions, subject to different lockups and vesting.

The Jupiter airdrop is an important milestone in Solana’s comeback over the last year and is a good barometer of the network’s progress.

In the short term, planned improvements to Solana’s scheduler as part of v1.18 should further reduce “scheduling jitter,” which encourages users to flood the network with spam while there is a contested state.

At the time of writing, the SOL price had dropped 3.04% in the previous 24 hours to $99.15.

According to the TIE, the monthly unlock of SOL tokens associated with Alameda is slated for Feb. 7 and 11. These monthly unlocks represent roughly 2% of Solana’s average trading volume and are planned to continue until September 2027 and January 2028, respectively, with a huge unlock of 7.5 million SOL scheduled for March 1, 2025.

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