- Solana records 86 million transactions, outpacing other blockchains.
- Solana can see a possible recovery from the dip following increasing liquidity from stablecoins.
At the time of writing, the blockchain analytics showed Solana [SOL] surpassing all other networks by leading in daily active addresses with over 4 million and daily transactions of about 86 million.
Other blockchains like Tron [TRX] had around 3 million addresses and 75 million transactions, Near Protocol [NEAR] had 2 million addresses and 25 million transactions.
BSC’s 1.5 million addresses and 50 million transactions, trailing far behind.
Source: X
The network usage dominance signified that SOL operates as a highly scalable blockchain, which established its position as a leading performer.
The many transactions indicate widespread adoption of this blockchain, which contributed to the growth of its ecosystem by drawing developers.
High network usage could force system administrators to invest in resource upgrades because the current setup may become less efficient or insecure.
Stablecoin supply surging
Looking at the stablecoin supplies, they showed an anticipated major growth for March 2024 and 2025 because of the upcoming GENIUS Act.
The total supply of 138.2B in 2024 included Ethereum with 75.3B, Tron with 48.5B, and Solana at 2.3B.
By 2025, the total rose to 225.4B, with Ethereum at 127.6B, Tron at 64.2B, and Solana surging 130% from $2.3B to $11.8B.
Source: X
The rapid growth of Solana as a stablecoin issuance platform was because of its rising popularity in this sector.
Higher trust and improved utility of Solana together create a positive effect that magnetizes additional DeFi projects and user engagement.
Solana’s market dominance together with increased investment and improved scalability could be attained by this move, yet network stability might face risks when such management is not handled properly.
Solana’s cup-and-handle pattern says…
For the price action, SOL developed a traditional cup-and-handle pattern, which displayed positive confirmation for longer-term price increase.
The SOL price within the cup-shaped portion rallied from $95 into $118 until it formed the handle.
The handle section between $110-$114 defined minor consolidation that preceded a possible price rise. The MACD bullish crossover confirmed this outlook.
Source: TradingView
SOL has the potential to increase to $135-$140 if it surpasses $120 alongside intensified trading volume.
A failure at $110 support during this pattern could indicate the formation is invalid. This could trigger SOL to drop toward $100 until another attempt at higher price levels occurs.
A fall below $98 could change market direction to negative, which may push the price toward $90 support level. A confirmed breakout needs a significant volume increase to achieve follow-through.
