Crypto Analyzer

Solana Records Second-Highest Day in Fees Thanks to Dogs and Memes

# Solana Blockchain Sees a Surge in Transaction Fees Driven by Memecoins and Dog Tokens

The Solana blockchain recently experienced a significant uptick in transaction fees, marking the second-highest day in total fees paid by users. On March 7, users on the Solana network collectively paid around $1.1 million in gas fees, with a substantial portion of these fees attributed to trading activities involving memecoins on decentralized exchanges.

Dog-related memecoins emerged as key players in driving the surge in trading volume on Solana. With the popularity of meme-based tokens like WIF and BONK on the rise, trading activity on Solana’s decentralized exchanges has been notably vibrant. The pairing of SOL-WIF recorded a trading volume of $1.04 billion over the past seven days, positioning it as one of the top-traded pairs on Solana-based DEXs.

Data from blockchain analytics firms such as Artemis and Dune shed light on the trend of memecoin trading and its impact on the Solana ecosystem. Artemis highlighted that three of the top five applications on Solana, in terms of gas consumption, were DeFi protocols, particularly trading platforms like Raydium, Jupiter, and Drift. These platforms collectively generated nearly $470,000 in gas fees within a 24-hour period.

The surge in fees generated by the Solana network can be attributed to the increased usage of memecoins, which have driven higher overall network activity. Jon Ma, co-founder of Artemis, pointed out that the spike in gas fees may also be linked to a rise in wallet transfer gas usage as users move their SOL tokens to and from centralized exchanges for trading purposes.

Furthermore, the performance of native assets on the Solana network has been notable, with the price of SOL standing at $145 at the time of reporting, reflecting an 11.2% increase over the past week. Additionally, popular memecoins like BONK and WIF have demonstrated strong market capitalizations exceeding $2 billion, according to data from CoinGecko.

The dynamics of the Solana blockchain ecosystem underscore the growing influence of meme-based tokens and their role in driving network activity and transaction volume. As the crypto space continues to evolve, the intersection of memes, decentralized finance, and blockchain technology is shaping new trends and narratives within the digital asset landscape.