The Chief Executive Officer of Coinbase, Brian Armstrong, apologized to customers yesterday for a big backlog of unprocessed transactions in the Solana network and informed that the issue had been resolved.
The exchange experienced a significant surge in trading volumes amid the launch of President Donald Trump’s official meme coin – $TRUMP – which resulted in severe network congestion for the Solana blockchain.
We have the Solana backlog triaged, and transactions should generate quickly again. If your transaction got canceled you can retry it now – apologies for the trouble.
It’s clear we need to step up our game on Solana, scale our infrastructure, and provide native support for…
— Brian Armstrong (@brian_armstrong) January 22, 2025
Data from DefiLlama indicated that the total value locked (TVL) within the network surged to $13.9 billion right after $TRUMP hit the market, while fees surged to over $30 million – almost 9 times higher than the daily average.
“Our goal is to provide tier 1 support for Solana, with the same level of support as Bitcoin, Ethereum, and Base (which also saw delays recently due to large surges of activity btw),” Armstrong emphasized in an X post addressing the issue.
Also read: Best Solana ICOs & Presales to Invest in January 2025
Decentralized applications on the Solana blockchain, like Jupiter and Raydium, experienced similar issues during this period, but Coinbase’s delays are a rare instance, especially as some transactions were backlogged for over 48 hours.
On Sunday, $TRUMP trading volumes reached as much as $40 billion. The token was launched in the Solana mainnet and was quickly listed by major decentralized and centralized exchanges.
Google showed a spike in crypto-related keyword searches starting on Friday 17 ahead of the President’s inauguration day. However, users’ interest in digital assets skyrocketed on Sunday when Trump officially announced his ties to Official Trump ($TRUMP).
Solana ($SOL) Takes a Pause After Huge 5-Day Rally
The price of Solana ($SOL) seems to have entered a consolidation phase following the massive rally it experienced from January 14 to 18 ahead of the President’s inauguration speech.
The price made an all-time high last Sunday and approached the $300 level for the first in its history but quickly retreated to close the session below its November 2022 peak. Now, the market appears to be taking a breather after these volatile days.
This consolidation phase appears to be forming a bull flag pattern that could propel the price of $SOL above the $270 level if confirmed.
This technical setup typically emerges after the price of an asset has rallied hard for a few days as early buyers take some profits off the table and create room for those who are a bit late to the party.
For this pattern’s bullish bias to be confirmed, the price must first break that resistance level, preferably during a session with above-average trading volumes. The Relative Strength Index (RSI) briefly moved to an overbought area and recorded a higher high, which indicates that momentum is on the positive side for now.
Solaxy ($SOLX) Raises $13.6M as It Prepares to Solve Solana’s Congestion Issues
The latest congestion issues that the Solana network experienced amid the launch of $TRUMP show how eagerly the ecosystem needs a layer-two scaling protocol like Solaxy ($SOLX).
Since its presale event started in December, this project has raised $13.6 million from investors to increase Solana’s efficiency by bundling offline transactions and incorporating a higher number of instructions in a single block.
The Solana ecosystem is growing fast amid the huge popularity of meme coins and the significant expansion of decentralized finance (DeFi) applications like Raydium and Jupiter.
To support this kind of growth, Solaxy will strengthen Solana’s infrastructure to make sure that nothing gets in its way to grow to the point that it can beat Ethereum as the leading smart contracts network in the industry.
At its discounted price of $0.001612, Solaxy offers both significant upside potential to investors once the asset is listed on exchanges and attractive staking rewards of 280% per year at the time of writing.
To buy $SOLX, head to the Solaxy website and connect your wallet. You can swap ETH, USDT, or BNB or complete your purchase by using a bank card. The next price increase will be in less than 48 hours, so don’t miss this opportunity to grab this L2 token at this low price.
