After a price dip, Solana (SOL) has managed to climb past the pivotal $140 mark before experiencing a slight pullback. Currently, SOL has seen a 7% growth, reaching a market valuation of $61.4 billion and trading around $136. This comes amidst a substantial surge in the volume of transactions on its network, which has led to some disruptions.
Increased DEX Transactions Strain Solana
Recent data from DeFiLlama reveals that from March 3 to March 6, decentralized exchanges (DEXs) running on the Solana network saw a significant hike in transaction volume, capturing investor interest. The volume peaked on March 5 with an unprecedented $2.85 billion in daily transactions, a record high.
This peak in trading activity on the Solana network corresponds with the period of onchain transaction overload, which has resulted in the current network congestion. The growing interest from investors towards the Solana ecosystem is believed to be a contributing factor to this upsurge in activity.
Cryptocurrency exchange Binance has acknowledged the congestion by stating that it had to intermittently suspend Solana withdrawal transactions due to the issues experienced on March 6.
SOL’s Price Resilience Amidst Network Troubles
Despite the broader market’s price volatility, particularly with Bitcoin, Solana’s value has been showing positive signs. Currently priced at $136, SOL is challenging a strong resistance level at $140. A break above this could potentially lead to a new uptrend. The digital asset also has established support levels at $115 and $104.
High transaction volumes accompany the positive price trajectory of SOL, underscoring robust investor interest. With significant market changes, Solana’s prospects for further price increases appear strong. Investors are on the lookout for alternatives to Ethereum‘s high transaction costs, and despite Solana’s congestion issues, it is still considered a strong competitor to Ethereum, earning the moniker “ETH killer.” Observers are keen to see how this dynamic will unfold.