- Solana faced significant congestion when Trump’s team launched TRUMP and MELANIA.
- Chris Chung, CEO of Solana swap platform Titan, blamed dApps for the congestion.
- A CCData report confirmed that Solana is now the third-largest blockchain in terms of total stablecoin supply.
Solana proved its mettle for the mainstream with the wild launch of two new meme coins, $TRUMP and $MELANIA. The U.S president announced the OFFICIAL TRUMP (TRUMP) token on January 17th, and the First Lady followed with her $MELANIA token the next day.
The TRUMP meme coin quickly exploded to a massive $14.5 billion market cap with over $26 billion in trading volume. MELANIA followed suit, surging past a $5 billion market cap. This caused TRUMP’s value to dip. The sheer amount of trading activity caused some slowdowns on the Solana network.
Despite the huge demand, the Solana blockchain itself stayed up and running. The bottlenecks were mainly at the decentralized application (dApp) level. Chris Chung, CEO of Solana swap platform Titan, said the congestion came from dApps struggling with increased traffic, not from problems in the blockchain itself.
Platforms like Phantom and Jito Labs saw service disruptions as transaction requests soared. Also, arbitrage bots had trouble stabilizing prices, leading to more volatility.
Related: XRP Surpasses Bitcoin and Solana to Lead Upbit’s Korean Won Market: Here’s Why
Firedancer: A Solution for Speed
The Solana network has dealt with outages in the past, with 14 in 2022. Since then, it has improved its scalability and resilience. Looking ahead, a key development for Solana’s future scalability is Firedancer. This is a new validator client from Jump Crypto. It’s designed to enhance transaction throughput and prevent network outages.
Firedancer is set to launch on Solana’s mainnet this year. The goal is to process up to 1 million transactions per second, much faster than traditional payment networks like Visa.
Stablecoin Supply Grows on Solana
It’s worth noting that since mid-January, the stablecoin supply on Solana has jumped 73%. A report by CCData on January 30th showed the supply on SOL of stablecoin at $11.1 billion, a surge of 112% since the start of the month. Solana is now the third-largest blockchain network in terms of stablecoin supply.
SOL Price Analysis: What’s Next?
The SOL daily price chart below shows that the altcoin rebounded from a dip into the bearish region of the Bollinger Bands. It remains in the bullish region. With prices holding above the 20-day Simple Moving Average, SOL could reach $250.
CoinMarketCap data shows that the altcoin is trading at $237.30 at press time, down 1% in the past day.
Related: Ripple Founder Liquidates $109M in XRP, While Solana Pump.fun Dumps $212M in SOL
The RSI indicator is at 54.77 for the SOL price action. This suggests higher prices for the cryptocurrency in the coming days. However, the gradient of the line indicates sluggish momentum for the altcoin as bears battle the bulls.
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Source: https://coinedition.com/solana-weathers-meme-coin-storm-focuses-on-future-scalability/