Solana’s Market Strength Unfazed by Rising Transaction Fees
The Essentials in Brief
Solana, one of the leading cryptocurrencies in the market, has experienced a significant increase in transaction fees in recent months. Despite the high costs, these fees do not appear to negatively affect network activity. The daily active addresses and the number of transactions remain high, suggesting that users are willing to pay the high fees.
Rising Transaction Fees on Solana
Data shows that Solana’s average transaction fees have risen sharply in recent months. The average fee has exceeded the $0.03 mark, which is significantly more expensive than most Layer-2 solutions. High transaction fees can affect network activity as users could conduct fewer transactions due to the high costs.
Network Activity Remains High Despite High Fees
Despite the high transaction costs, Solana’s daily active addresses and the number of daily transactions remain relatively high. This suggests that users are willing to pay the high transaction costs. The high fees also have a positive impact on the recorded value of the blockchain, which is reflected in an increase in revenue.
Solana’s Performance and Market Capitalization
Solana’s performance on the price front remained promising over the last month. According to CoinMarketCap, SOL rose by more than 17% in the last 30 days. At the time of writing, SOL was trading at $102.91 with a market capitalization of over $45.3 billion, making it the fifth largest cryptocurrency.
Our Assessment
Despite the high transaction fees, Solana’s network activity does not appear to be affected. This could suggest that users recognize the value and benefits of Solana and are willing to pay for it. However, it remains to be seen whether these high fees are sustainable in the long term and whether they will not deter users.
Sources: AMBCrypto, CoinMarketCap, Artemis, Santiment.
| Symbol | SOL |
| Coin type | Alt Coin |
| Transaction Speed | High |
| Pros |
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| Cons |
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| Price | $255.54 |
| 24h % | 0.19 % |
| 7d % | 18.41 % |
| 30d % | 44.04 % |
| 60d % | 72.18 % |
| 1y % | 352.25 % |
| Market Cap | $121,304,912,723.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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