Solana’s Layer-1 blockchain is experiencing an unprecedented spike in activity, fueled by the rising demand for meme coins TRUMP and MELANIA. As transaction volumes hit new highs, Solana’s network fees and revenue have soared to record levels.

Solana’s Revenue Hits New Highs
The growing interest in TRUMP and MELANIA has significantly boosted Solana’s user activity. As traders rush to capitalize on the hype, network transaction fees have skyrocketed, setting a new revenue milestone.
According to DeFiLlama, Solana’s daily fees reached $36 million on Monday—a 176% jump from the previous day’s $13 million. Revenue from these fees also spiked, hitting $18 million, a 200% increase from the previous day.

Challenges Amid Rising Activity
Despite the surge in activity, Solana faces challenges due to heightened trading volumes. A wave of sell-offs has started affecting SOL’s price. After reaching an all-time high on January 19, SOL has retraced, currently trading at $263.69, down 10% from its peak.

Coinglass data indicates that many futures traders opened short positions against SOL during Monday’s early Asian session. This was reflected in the funding rate, which dropped to -0.09%, signaling bearish sentiment. Negative funding rates indicate that short sellers are paying long position holders, suggesting a bearish outlook.

However, market sentiment is shifting. SOL’s funding rate has now risen to 0.0059%, suggesting that traders are beginning to take long positions once again.
SOL Price Prediction: Can It Hit New Highs?
If bullish sentiment holds, SOL could resume its upward trend and retest its all-time high of $295.83. A successful breakout could turn this level into a support floor, potentially pushing the coin to new record highs.
On the other hand, if selling pressure intensifies, SOL’s price may decline further, potentially dropping to the $239.39 support level.
Conclusion
Solana’s explosive growth, driven by meme coin frenzy, showcases its strong market presence. However, traders should remain cautious and monitor key resistance and support levels to navigate potential volatility.