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Solana faces extreme USDT volatility amid fifth anniversary

Solana faces extreme USDT volatility amid fifth anniversary

GrafaGrafa2025/03/18 10:40
By:Isaac Francis

Solana (CRYPTO:SOL) marked its fifth anniversary with a surge in USDT (CRYPTO:USDT) volatility on its transport layer, driven by heightened trading activity and speculative interest.

A study by Web3 payments firm Mercuryo revealed that Solana experienced five significant USDT volatility spikes in 2025, with daily trade volumes fluctuating dramatically.

These included increases of up to 137% and drops ranging between 60% and 70%, highlighting the network's intense market activity.

Greg Waisman, Co-founder of Mercuryo, attributed this volatility to Solana's growing appeal among crypto traders and the rise of meme coins.

Platforms like Pump.fun have fueled trading interest, with Solana's trade volumes occasionally surpassing Ethereum's in recent months.

This surge in activity underscores the speculative nature of the market, particularly within the meme coin ecosystem.

Since its launch on March 16, 2020, Solana has processed over 408 billion transactions and nearly $1 trillion in value on decentralised exchanges.

Despite its significant growth, the network has faced chaotic capital inflows, reflecting both its popularity and market unpredictability.

The study also noted that Solana’s USDT trading remains above its 20-day exponential moving average (EMA), suggesting sustained interest among traders.

However, such extreme volatility raises questions about stability as the network continues to expand.

While Solana celebrates its achievements over the past five years, including advancements in transaction speed and scalability, its current volatility highlights the challenges of balancing growth with market stability.

As the network evolves, maintaining investor confidence amid such fluctuations will be crucial for its long-term success.

At the time of reporting, the Solana (SOL) price was $124.07.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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