Solana spiked in on-chain activity in January 2025, becoming a go-to place for memecoins as well as decentralized exchanges (DEX). One of the biggest events included the TRUMP memecoin that hit a fully diluted valuation of $75 billion. This exponential rise pointed to Solana’s position within the emerging memecoin market, which gained traction due to its high speed and low fees.
The broader crypto market sold off during Monday’s U.S. trading session, as most of the top 100 cryptocurrencies by market cap were in the red. Market concerns were raised after investors responded to the Chinese AI project known as DeepSeek. The price of Bitcoin was in the red and was near the critical level of $100,000 which led to the drop of most of the top altcoins, including SOL. However, the Solana on-chain activity kept on demonstrating some encouraging trends even in the bear market.
Solana’s DEX Volume Soars
Among the developments, memecoin traders helped boost the price of SOL this month to make it one of the best-performing assets. Among them, the memecoin TRUMP experienced unprecedented growth in demand. This led to more traffic to Solana’s blockchain, which is known for high-speed transactions and low fees. At the peak of the TRUMP rally, the transaction fee on Solana stood at $0.41, a far cry from the exorbitant fee that is charged by other networks such as Ethereum.
Besides memecoin trading volume, the trading volume in Solana’s DEX ecosystem also surged in January. Per The Block Pro, Solana DEX trading volume stood at a record $226 billion, dominating the next ten blockchains for the fourth consecutive month. All of this cements SOL, the native token of Solana, as one of the best spot trading and financial dApp platforms in the market.
Solana’s blockchain performance is even more remarkable when comparing it to Ethereum and other layer-1 blockchains while actively competing with them. The high throughput of the network with fast speed and low cost has led to its widespread use in decentralized finance (DeFi). In January, Solana collected $203M in fees compared to Ethereum, which collected $132M in fees.
Solana Forms Bull Flag
SOL price has, however, displayed a marked potential for revival even though the market is a challenge. In the last eight days, SOL has been unable to close above the $265 resistance level. There has been a lot of price action in the market, with gains and losses on a day-to-day basis implied by the balance of buying and selling pressures. In the SOL chart, a pattern is developing, which is usually a sign of a bullish breakout.
The chart has formed a bull flag, which is a pattern indicating potential growth in prices in the coming days. If this pattern continues, SOL could break through the $247 resistance level and head towards a price of $350. This would be a possible 50% price rise, which is relatively good news for buyers in order to get things moving.
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At the time of writing, SOL is trading at $240.50. This is a 6.73% jump recorded within the last 24 hours and a 2.04% rise in the past week. The trading volume of the cryptocurrency is around $10.08 billion in a day, and the current supply of SOL is 490 million. SOL is the sixth most valuable cryptocurrency in the market, with a current market capitalization of $117.2 billion.
Conclusion
In the future, given Solana’s continued market leadership in the memecoin and DEX segments, there is more likelihood of growth. It has low transaction fees, fast settlements and a growing user base, which means SOL can take more DeFi market share. Investors and analysts will be watching with interest to see if the blockchain can build on its current successes and continue to hold its own as a major part of the ongoing cryptocurrency market.
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FAQs
What made Solana a top choice for memecoin traders in January 2025?
Solana’s low fees and fast transaction speeds made it an ideal platform for the TRUMP memecoin’s rapid growth.
How did Solana perform in comparison to Ethereum in January 2025?
Solana generated $203 million in fees, outpacing Ethereum’s $132 million during the same period.
What is the current price of Solana (SOL)?
As of now, SOL is trading at $240.50, marking a 6.73% increase in the last 24 hours.
What technical pattern is suggesting potential growth for Solana?
SOL’s price chart is forming a bull flag pattern, signaling a potential breakout toward $350.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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