Solana’s Monthly Active Addresses Hit All-Time High in October
Network activity continues to be driven by memecoin traders, as a growing number of users seem to be embracing the memecoin craze.
Activity on the Solana network continues to grow, surpassing all expectations. In October, the network achieved a new all-time high in monthly active addresses, exceeding 120 million.
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Active addresses are commonly used to estimate the user base on a blockchain network. While this metric is not without its flaws—since a single person can control multiple addresses—it still provides valuable insights into the overall size of the network’s user base.
Alongside the rising number of monthly active addresses, Solana has matched its previous peak in daily transactions, with approximately 40 million daily transactions currently recorded. A similar figure was seen in July of this year.
Interestingly, while monthly active addresses have increased by about 367% since August, daily transaction numbers have only grown by around 30%. This might be due to a large influx of new users who are gradually exploring the network rather than actively trading Solana tokens.
This hypothesis seems to hold true. Reports indicate that in October alone, approximately $600 million was bridged to Solana, with over 90% of this amount originating from Ethereum.
In fact, Solana has been drawing liquidity and users away from Ethereum for some time and, in October, surpassed Ethereum in monthly decentralized exchange (DEX) trading volume, with $52 billion compared to Ethereum’s $41 billion.
The remarkable surge in activity is largely attributed to memecoins, which, besides Bitcoin itself, is perhaps the only sector in cryptocurrency experiencing a bull run during this cycle. Solana is more user-friendly than Ethereum for DEX trading, offering lower fees and faster transactions. Moreover, it provides a suite of tools and has fostered a vibrant community of traders and memecoin creators who launch numerous memecoins almost every minute.
Pump.fun, a prominent memecoin launching platform, significantly contributes to this success, with over 25,000 memecoins launching on the platform daily. Pump.fun is arguably one of the most successful business launches this year, having generated over $169 million in revenue and launched over 2.9 million tokens since March.
For those looking to launch a memecoin, Solana has become the prime destination, offering traders, liquidity, and potential demand, assuming your memecoin catches the trend.
The main question now is whether this memecoin frenzy is sustainable in the long term, and whether Solana can leverage this influx of users from memecoins to expand other sectors of its ecosystem, such as DeFi, social apps, and NFTs.
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