Coinbase recently fixed a major backlog issue on the Solana network, causing delays of up to 21 hours for some users. This problem was caused by the launch of the Donald Trump memecoin (TRUMP), which led to a huge surge in demand. While the issue is now resolved, it shows how meme-based cryptocurrencies are having a bigger impact on the market.
The Solana Transaction Backlog.
Coinbase had a 48-hour delay in processing transactions, while some users experienced up to 21 hours. This was attributed to a peak in Solana network traffic following the TRUMP memecoin launch. On Jan. 22, Coinbase CEO Brian Armstrong apologized and promised that the problem was resolved, requesting users whose transactions were cancelled to try again.
Solana Sees Traffic Boom from Memecoin Lauch
The TRUMP memecoin launch caused Solana network traffic to surge due to the sudden rush of buyers.This caused delay in transaction on Coinbase and other wallets too. However, the blockchain of Solana didn’t crash entirely; still, it demonstrates that meme coins are popularizing in the crypto market.
The Impact of TRUMP on Solana’s Market.
The TRUMP memecoin launch spurred Solana’s market, with its token reaching an all-time high of $293 on Jan. 19. This also increased Solana’s total value locked (TVL) to $13.9 billion. Network fees spiked to $17.8 million on Jan. 19, which then retreated to $11.7 million by Jan. 21, but the value was still several times higher than a usual one.
The launching of TRUMP memecoin affected the price and fees of Solana, though the search numbers online for Solana and other crypto terms had yet to increase. Google Trends claims that “buy Solana” was at a peak on Jan19. Other searches like “buy crypto,” “Coinbase,” and “crypto app” have increased as well. Crypto apps are now atop the Apple App Store, where Crypto.com takes the first place, Coinbase second, and Moonshot third.
Conclusion.
The recent Solana transaction backlog on Coinbase highlights how the rise of meme-based cryptocurrencies, like TRUMP, can have a significant impact on the broader crypto market. Despite the congestion and delays, the crypto space continues to show growth, with increasing user interest and adoption. As meme coins gain popularity, platforms and networks will need to be prepared for higher traffic volumes, but for now, the crypto market remains as dynamic and unpredictable as ever.
Since the problem has been solved and because of the emerging influence of memecoins, the future for crypto remains rosy for the investor as well as the day-to-day user.
