Coinbase Upgrades Its Infrastructure to Better Support the Solana Ecosystem

After receiving user complaints, Coinbase has upgraded its infrastructure to better support the Solana ecosystem.

Coinbase has upgraded its infrastructure to better support the Solana ecosystem following user complaints. The largest U.S. crypto exchange has rolled out improved failsafes, enhanced liquidity measures, and faster transaction processing.

According to a Wednesday blog post, Coinbase has introduced asynchronous transaction processing that will result in a five-fold increase in block processing throughput, four-fold improvements to the remote procedure call (RPC), failover augmentations to increase resilience, liquidity optimizations, and enhanced operational controls.

The crypto exchange also shared an X post that highlighted the upgrades. According to the post, these changes will enable quicker and more dependable sends and receives, reaffirming Coinbase’s commitment to delivering industry-best performance and reliability for its users.

Coinbase is continuing to invest in its infrastructure to meet demand as Solana scales in the future, the crypto exchange added.

Coinbase also shared a post on the X platform on January 21, stating that “Coinbase has seen unprecedented Solana transaction activity … and our systems have been unable to validate and process transactions at the speed that we are receiving them.”

This came after users experienced delays when attempting to withdraw or deposit SOL, sometimes lasting hours.

Coinbase noted that the transaction volume was ten times higher than usual at the time. According to the crypto exchange, its engineers and product managers are working around the clock to increase the throughput of Coinbase's Solana node.

The crypto exchange explained that it's introducing several changes to its infrastructure to process transactions faster and more effectively, adding that it's working closely with the Solana community to optimize performance and ensure a seamless experience for all users.

Meme coin trading has led to increased popularity for Solana, which in turn has led to high transaction volumes.

The substantial meme coin trading activity has been a decisive factor in overloading Solana's infrastructure, ultimately leading to thelag in transaction processing times. This was partly due to a significant rise in Solana's market capitalization over the weekend before the inauguration when the new president and first lady released meme coins on the blockchain, contributing to the rise in popularity of meme coin trading.

However, weeks before Trump’s token launch, reports from sources revealed that Solana's overall onchain trading volume and fees reached all-time highs due to memecoin trading volume. On January 5, Solana's onchain volume reached an all-time high of $3.79 billion, with approximately 4.5 million active addresses.

Solana is up nearly 23% over the past week, making it one of the biggest gainers in the top 100 coins. According to CoinMarketCap reports, Solana is trading at $133.32, reflecting a 0.04% increase in the past 24 hours. With a market capitalization of around $69.68 billion, it holds the sixth spot among all cryptocurrencies by market value.

The recent surge comes amid Wednesday’s launch of Canada’s first spot Solana ETFs from issuers, including 3iQ, Evolve, CI, and Purpose. The exchange-traded funds feature staking functionality, providing investors with yield obtained by issuers staking their SOL to support the Solana blockchain.

Solana’s price surged following the news of the ETF launches, ultimately increasing by 18% over the past week, Finally, the cryptocurrency's value has risen to $130, marking a 38% increase from its price at the beginning of the year.

Solana’s native token has also seen a strong recovery since March when it hit a low of $7.70. The token’s price has since increased by 1544%.

Notably, these developments come as the U.S. Securities and Exchange Commission continues to review applications for spot Solana ETFs.

Solana’s price surged following the news of the ETF launches, ultimately increasing by 18% over the past week, Finally, the cryptocurrency's value has risen to $130, marking a 38% increase from its price at the beginning of the year.

Notably, these developments come as the U.S. Securities and Exchange Commission continues to review applications for spot Solana ETFs.