Solana

Raydium

when

The Solana blockchain recently saw its onchain transfer volume hit record highs, but market intelligence firm Glassnode claims that most of this activity is conducted by bots.&nbsp;
In a Nov. 19 post on X, Glassnode <a data-ct-non-breakable="null" href="https://x.com/glassnode/status/1858901550292148463" rel="null" target="null" text="null" title="null">noted</a> that Solana’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>) transfer volume hit an all-time high of $318 billion on Nov. 16. 
This is almost three times SOL’s total market capitalization, which is currently about $112.5 billion. The number of total active addresses on Solana had spiked to 22 million.&nbsp;
Still, the onchain analytics firm noted that the mean and median transaction volumes dipped around the same time.&nbsp;
This raises questions about the veracity of Solana metrics because if the growth is organic, it should be accompanied by a similar uptick in the averages.
In an attempt to explain this phenomenon, Glassnode said:
<blockquote>
 “This pattern of network activity inflation may be indicative of bot-driven activity, which has historically contributed to similar trends on Solana.”
</blockquote>
<figure>
 <img alt="Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?" src="https://s3.cointelegraph.com/uploads/2024-11/01934910-7300-7141-8604-d388984fd654" title="">
 <figcaption style="text-align: center;">
 Total transfer volume on Solana. Source: Glassnode
 </figcaption>
</figure>
The ramped-up activity was likely responsible for recent increases in fees and network revenue.&nbsp;
Solana daily revenue hit a record high of almost $6 million on Nov. 20, with network participants paying $7.63 million in transaction fees, according to <a data-ct-non-breakable="null" href="https://defillama.com/chain/Solana?tvl=false&amp;fees=true&amp;groupBy=daily&amp;revenue=true" rel="null" target="null" text="null" title="null">data</a> from DefiLlama.
<figure>
 <img alt="Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?" src="https://s3.cointelegraph.com/uploads/2024-11/01934911-1979-7459-ae3e-8047e14c5b8d" title="">
 <figcaption style="text-align: center;">
 Solana revenue and fees. Source: DefiLlama
 </figcaption>
</figure>
Additional data from Blockworks Research <a data-ct-non-breakable="null" href="https://solana.blockworksresearch.com/" rel="null" target="null" text="null" title="null">reveals</a> that Solana achieved an all-time high of $26 million in real economic value (REV) on Nov. 19.&nbsp;
The layer-1 network also <a data-ct-non-breakable="null" href="https://defillama.com/dexs/chains/solana" rel="null" target="null" text="null" title="null">clocked the highest-ever</a> decentralized exchange (DEX) volume of $6.93 billion, with Raydium representing 74% of Solana’s DEX trading volume with $5.13 billion, on Nov. 19, as per DefiLlama data.&nbsp;
Still, a closer analysis of Raydium’s liquidity pools reveals that countless liquidity pools on this protocol have little to no liquidity and generate unreal trading volumes. 
For example, the SOL-HAT pool held just $7 in liquidity but had almost $400,000 in 24-hour trading volume.
<figure>
 <img alt="Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?" src="https://s3.cointelegraph.com/uploads/2024-11/01934911-afb9-7aa8-88ed-eda4ed1a88a1" title="">
 <figcaption style="text-align: center;">
 Liquidity pools on Raydium. Source: Raydium
 </figcaption>
</figure>
This suggests that bots and other inorganic trading activities may drive a big chunk of Solana’s transaction volume.&nbsp;
This is not the only time Glassnode has claimed the presence of inorganic activity on Solana. On Nov. 4, the firm <a data-ct-non-breakable="null" href="https://x.com/glassnode/status/1853495366273880498" rel="null" target="null" text="null" title="null">asserted</a> that a “massive spike in onchain transfer volume” on Solana was “driven by a high-activity wallet using multiple accounts.”
Similarly, Cointelegraph previously <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bots-pushing-solana-over-ethereum-research" rel="null" target="null" text="null" title="null">reported</a> on claims by pseudonymous researcher Flip Research that most of the activity on Solana was conducted by bots.
Critics have suggested that reported figures of Solana’s network activity in the last couple of months may be artificially inflated due to wash trading in memecoins, leading to skepticism over the network’s real growth trajectory.
<h2 id="strong-sol-could-soar-straight-to-400-strong">SOL could “soar straight to $400”</h2>
Nevertheless, the recent spike in Solana’s network activity continues to spark investor interest as traders remain optimistic about Solana’s (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>) prospects.
Pseudonymous analyst Titan of Crypto <a data-ct-non-breakable="null" href="https://x.com/Washigorira/status/1858091955596431732" rel="null" target="null" text="null" title="null">says</a> SOL could possibly <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/solana-price-targets-400-after-monthly-cup-and-handle-breakout-analyst#:~:text=Solana%20DEX%20volume%20beats%20previous%20records%20by%20100%25&amp;text=According%20to%20DefiLlama%2C%20Solana's%20decentralized,%2417.5%20billion%20in%20March%202024." rel="null" target="null" text="null" title="null">hit the $400 mark</a> as it appears ready to break out of a cup-and-handle pattern.&nbsp;
<figure>
 <img alt="Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?" src="https://s3.cointelegraph.com/uploads/2024-11/01934912-52c6-73b1-a5ed-03c29177677a" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/Washigorira/status/1858091955596431732" rel="null" target="null" text="null" title="https://x.com/Washigorira/status/1858091955596431732">Titan of Crypto</a>
 </figcaption>
</figure>
Veteran trader Peter Brandt shared similar sentiments, <a data-ct-non-breakable="null" href="https://x.com/PeterLBrandt/status/1858621597503926664" rel="null" target="null" text="null" title="null">saying</a> Solana’s upward swing over the last few weeks is likely to drive its price further higher, setting the short-term target at around $275.
<blockquote>
 “Oftentimes, the price moves in swings, where the swings are relatively equal in price. I am sure Elliott traders get quite precise (as they tend to do ), but I just use swing targets as a guide.”
</blockquote>
<figure>
 <img alt="Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?" src="https://s3.cointelegraph.com/uploads/2024-11/01934912-daac-7de6-af4c-77159f7be8dd" title="">
 <figcaption style="text-align: center;">
 SOL/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://x.com/PeterLBrandt/status/1858621597503926664" rel="null" target="null" text="null" title="https://x.com/PeterLBrandt/status/1858621597503926664">Peter Brandt</a>
 </figcaption>
</figure>
<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/why-is-solana-price-up-this-week" rel="null" target="null" text="null" title="null">Solana’s recent performance</a> could be only the beginning of a bigger bull market cycle. Its price was up 15% over the last seven days and 43% over the last month to trade at $238 at the time of publication. 
This uptick saw its market cap reach an all-time high of $117.8 billion on Nov. 18, cementing its position as the fourth-largest cryptocurrency by market value.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Solana’s record $318B transfer volume ‘bot driven’ — Will SOL price suffer?

Table of Contents

Cointelegraph

Other articles published on Nov 20, 2024

Bitcoin Reached New ATH and Lack of FOMO Suggests $100K Is Next

MicroStrategy’s Bitcoin Holdings Reach $24B with Latest Acquisition

MicroStrategy Chair Michael Saylor To Pitch BTC Buying Strategy To Microsoft Board, Says Berkshir...

MicroStrategy’s Bitcoin Strategy Hits Microsoft’s Boardroom

IBIT trading options launch, Bitcoin tap new all-time high $94k

Bounce Token Price Prediction 2025 vs 2024 Year-End Analysis and 2030 Forecast

Join our free newsletter for daily crypto updates!