Solana Sets Record for Active Addresses

Solana recorded its highest-ever monthly number of active addresses with over 123 million last month.

According to The Block's data dashboard, the number of unique addresses signing transactions on Solana rose by over 42% from September's figures. In January, there were less than 12.7 million active addresses.

Drivers of Activity

Analysts attribute Solana's surge in activity to the growing popularity of memecoin trading on the network. This trend has been supported by platforms like the memecoin generation app Pump.fun and the decentralized exchange Raydium, both of which experienced significant activity over the past month.

According to October's a16z’s State of Crypto report, Solana boasted over 100 million monthly active addresses, compared to approximately 57 million on Ethereum and other EVM chains, indicating higher user engagement on the Solana network.

Pump.fun generated over $30.5 million in revenue in October, while Raydium achieved more than $30 billion in trade volume, as reported by DefiLlama.

Eden Au, Research Director at The Block, noted: "Pump.fun registered a record amount of new tokens launched in October, while Raydium also had its biggest monthly volume in the same period."

Despite this success, Au expressed concern over the sustainability of the memecoin trend, stating: "…it is unclear if this memecoin narrative would be sustainable if other narratives take over and the market attention shifts elsewhere." He emphasized that Solana hosts many types of apps and infrastructure—ranging from DeFi to DePIN—indicating its potential longevity despite competition.

Justin D’Anethan, head of business development at Keyrock APAC, explained that Solana's appeal lies in its speed and cost-efficiency, attracting users who prefer these factors over ideological considerations. He stated, "While Ethereum and Layer-2 solutions are vital for DeFi, Solana's low-fee, high-performance network captures users needing fast, affordable transactions. For high-frequency or smaller trades, Solana's structure is ideal, as Ethereum’s fees often diminish profits."

Rise of Memecoins

The Goatseus Maximus (GOAT) meme token's rapid rise, linked to the AI chatbox Terminal of Truths, has generated excitement. The popularity of the GOAT token has inspired the creation of numerous other AI-themed memecoins on Solana.

As of now, Solana's native cryptocurrency (SOL) is trading at $161, reflecting a 12% increase over the past month.