On-chain activity on the Solana network is heating up, driven by a new wave of AI-focused tokens and the viral success of the launchpad Bags. While SOL's price has seen a slight pullback recently, the underlying ecosystem is experiencing a significant uptick in usage and fees.
Bags, a launchpad built on Solana similar to Pump.fun, has quickly become popular among users of the generative AI platform Claude. Its growing specialization in AI-themed tokens has sparked a surge in demand. Data from DeFi Llama shows Bags fees spiked to a record $2 million just six days ago and have remained above $400,000 daily since. Jupiter data indicates Bags has captured a 23.2% market share in the launchpad sector over the past week, surpassing established rivals like Meteora and LetsBonk.fun.
This increased activity directly benefits Solana (SOL) through higher network transaction volumes and fees. However, SOL's price has been consolidating for months, trading between $120 and $146. It has declined in four of the last six trading sessions, with the $120 support level potentially being tested again if market sentiment remains weak.
Analysts suggest that a sustained spike in network activity from protocols like Bags could drive up demand for SOL. For a confirmed bullish reversal, the price needs to break out of its consolidation pattern and move above the $160 resistance level. A successful breakout could potentially target the $200 price point.
The article also highlights another Solana-based project, Bitcoin Hyper ($HYPER), which is conducting a presale. It aims to build a Bitcoin Layer 2 solution with Solana-like speed and has reportedly raised over $30 million. Early $HYPER buyers are currently offered staking yields of up to 38% APY.
