Solana's monthly trading volume reached its highest level in years

There was a significant increase in transaction volume on the Solana blockchain in January.

The trading volume of SOL and SPL tokens on the Solana blockchain increased to $951.9 billion in January and there is still a day left until the end of the month. This represents a 30% increase in economic throughput on the network compared to December's $735.8 billion volume, a multi-month high at the time.

The increase in transaction activity on the blockchain is significantly higher than levels seen in 2023 and throughout most of 2022. For example, in September 2023, transaction volume on the Solana network reached a low of $40 billion .

Solana price recovered

On Monday, SOL rose back above the $100 mark. On decentralized exchanges, the increase in trading activity appears to be driven by WEN token pairs. According to data from Dune Analytics, the top 5 DEX trading positions over the past 24 hours are made up of stablecoin-SOL, stablecoin-WEN and SOL-WEN pairs.



Data shows that after stablecoins, WEN and SOL pairs account for the majority of Solana-based DEX volume. Source: Dune Analytics.

This week, WEN was airdropped to users of the Jupiter decentralized exchange on the Solana network. The airdrop is also open to Solana Saga phone users and owners of several Solana-based NFT projects.

Liquidation increased dramatically after Solana increased its price

After rising nearly 8% to $104.44, SOL is down more than 2% on the day and trading at $101.20.


SOL price chart. Source: TradingView

Over the past 24 hours, SOL price fluctuations have led to significant liquidation of Short positions on centralized exchanges. The volatility resulted in the liquidation of approximately $9.9 million, with the majority (nearly $8 million) being short positions.

According to CoinGlass data, the overall cryptocurrency market has seen more than $115 million liquidated in the past 24 hours.