Solana Hits Record High in Onchain Transfer Volume, But Glassnode Flags Bot Activity

Solana Hits New Market Cap High: What Investors Should Know About the Recent Surge

Solana Hits – The Solana blockchain recently reached an all-time high in onchain transfer volume, with a massive $318 billion in transactions recorded on November 16, according to market intelligence firm Glassnode. However, despite this impressive figure, Glassnode warns that much of the activity could be driven by bots, raising concerns about the authenticity of the reported numbers.

Solana’s Onchain Transfer Volume and Market Capitalization

Solana’s SOL transfer volume surged dramatically, almost three times its total market capitalization, which currently sits at about $112.5 billion. The number of active addresses on Solana also spiked, reaching a total of 22 million. However, Glassnode pointed out that the mean and median transaction volumes fell at the same time, which casts doubt on whether the growth is truly organic.

Glassnode’s analysts highlighted that if the growth were organic, it should be accompanied by an increase in the average transaction volume. Instead, the discrepancy suggests that bot-driven activity may be inflating the transaction numbers. The firm noted that this pattern of inflated activity has been observed historically on the Solana network.

Bot Activity and Impact on Solana’s Network

Glassnode attributes the surge in network activity to what appears to be bot-driven transactions, which have contributed to similar trends in the past. This increased activity has led to higher network fees and a jump in network revenue. Solana’s daily revenue peaked at a record $6 million on November 20, with participants paying $7.63 million in transaction fees. Additionally, data from DefiLlama shows that Solana reached an all-time high of $26 million in real economic value (REV) on November 19.

On the same day, Solana also saw its decentralized exchange (DEX) volume hit a record of $6.93 billion, with Raydium accounting for 74% of the volume, totaling $5.13 billion. Despite these impressive numbers, a closer examination of Raydium’s liquidity pools reveals that many pools have low or no liquidity, yet show unrealistically high trading volumes. For instance, the SOL-HAT pool had only $7 in liquidity, yet reported nearly $400,000 in 24-hour trading volume. This further supports the theory that bots may be generating a significant portion of Solana’s transaction volume.

Concerns Over Solana’s Growth Trajectory

Glassnode’s findings echo similar concerns voiced by other analysts. On November 4, the firm claimed that a sudden spike in Solana’s onchain transfer volume was caused by a high-activity wallet using multiple accounts. Additionally, Flip Research, a pseudonymous researcher, previously argued that most of Solana’s activity is likely driven by bots.

Critics suggest that the reported figures may be artificially inflated due to wash trading in memecoins, casting doubt on the true growth trajectory of Solana. The focus on bot-driven activity and unreal trading volumes has led to skepticism regarding the network’s organic growth and its potential to sustain long-term success.

Solana’s Price Predictions and Investor Sentiment

Despite the concerns over artificial activity, Solana’s recent surge in network activity has caught the attention of investors, who remain optimistic about the SOL price prospects. According to pseudonymous analyst Titan of Crypto, SOL could potentially soar to $400 as it appears poised to break out of a cup-and-handle pattern. Veteran trader Peter Brandt shares a similar outlook, forecasting that Solana’s recent upward momentum will continue, with a short-term target of around $275.

Solana’s price has increased by 15% over the past seven days and 43% over the last month, bringing the price to $238 at the time of publication. This surge has helped Solana reach an all-time high market capitalization of $117.8 billion as of November 18, solidifying its position as the fourth-largest cryptocurrency by market value.