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- 1 2/3rd transactions in USDC on Solana are below $100, while the rest are between $1-$10.
- 2 SOL was trading at a market price of $22.92 at press time.
A practice is considered mainstream when even a common individual is able to bring it into routine. Cryptocurrency, as a whole, is still struggling to go mainstream. However, Solana (SOL) is striking as being a convenient payments platform. A recent report notes the network is recording rising transaction activity.
Petty Transactions Gaining Momentum on Solana
Galaxy Research, the research arm of Galaxy Digital, posted an image presenting petty transactions that are gaining momentum. 2/3rd transactions in USDC, native cryptocurrency of Circle, on Solana are below $100, while the rest of the transactions are between $1-$10, defying Ethereum (ETH) in this context. ETH largely remains home to transactions above $10K.
More than 2/3 of USDC txs on @solana are transfers of less than $100, and more than 1/3 of USDC txs are transfers between $1-$10.
— Galaxy Research (@glxyresearch) October 6, 2023
The high frequency of small, dollar-denominated txs on Solana highlights the network's potential for supporting payments activity. pic.twitter.com/dr4897Mtx1
This shows the growing popularity of Solana among low income groups of the crypto community. The crypto asset recently landed partnerships with major corporations, Shopify and Visa. The former recently integrated Solana Pay on the platform this August. Meanwhile, the latter is using the blockchain platform for USDC settlements.
Shopify has over 2 Million daily active users (DAUs) while Visa holds a crowd of nearly a Billion. There isn’t data available regarding the number of Visa users holding crypto. However, news agency CNBC reported last January that crypto-linked card activity surpassed $2 Billion. Suffice to say, the company has a contribution somewhere in this landscape.
The Solana ecosystem’s growth has been hampered by network outages in the past. Anatoly Yakovenko, Solana co-founder, “cursed” low-cost transactions for being the primary cause behind the outages. Last year alone, the platform experienced 14 outages with the longest shutdown lasting over 18 hours.
Fear is Feeding the Danger Uncountable
Lark Davis, a financial analyst, called Solana a “comeback kid” in his recent video. Nonetheless, he criticized the crypto asset in December 2022 while speculating about the end of the ecosystem. Positive investors’ sentiment adds to potential growth of the network. However, CoinMarketCap’s (CMC) fear and greed indicator is leaning left, indicating brewing fear in the cryptosphere.
Altcoins are likely to follow market dominators Bitcoin (BTC) and Ethereum. Both the cryptocurrencies have fallen this week with other altcoins following the pattern. CMC data reflects Cardano (ADA), Toncoin (TON), IOTA (IOTA) and more among top gainers while Dogecoin (DOGE), Shiba Inu (SHIB), Litecoin (LTC) and more among top losers.
Recent study on-chain insights provider Nansen speculated FTX’s asset liquidation by Galaxy Digital could hurt SOL price. Reason being the now bankrupt crypto exchange is currently the largest holder of the network’s native token. It may trigger a large-scale sell-off, further declining the coin’s value.
Solana price has declined by over 2 percent today. However, momentum has returned with the asset changing hands at $22.92 at publication time. Additionally, it gained nearly 30 percent during the final days of September and has sustained $22 and $24 in October 2023, so far.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
