Solana's recent continued price increase is largely driven by memecoin trading on its network, according to the founder of a Solana-based decentralized exchange.

Zeta Markets founder Tristan Frizza said the token's increase in value was largely driven by an increase in memecoin trading activity on the Solana network.

“Memecoin has definitely become an important factor driving activity on Solana. Beyond speculation, this also demonstrates Solana's ability to handle high transaction volumes at low costs, making it the ideal environment for retail users.” Frizza shared with The Block.

To illustrate this, Frizza pointed to on-chain metrics such as Solana's total value locked (TVL) surpassing $4.9 billion. “This shows strong network activity, and the number of active users has also continued to increase, with monthly active addresses reaching a new high of 41.65 million in May,” Frizza added. .

Solana is up more than 5% in the past 24 hours and is currently trading at $175 at the time of writing, according to The Block's price page.

Solana is driven by growth in DeFi

According to this week's Bitfinex Alpha report, Solana's DeFi ecosystem is experiencing growth, as demonstrated by its lending, liquidity staking, and perpetual markets.

“The resurgence of Solana is due to the advantages it offers over other blockchains in terms of transaction speed per second and scalability. Both Solana and Ethereum continue to grow, but Solana's growth is notable