By
Svetlana Soroka
April 30th, 2024
The move from different wallets to support SPL tokens suggests investors’ confidence and enthusiasm towards Solana products.
Popular cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) took to the X platform to announce the integration of Solana DEX on its platform, birthing the trade of Solana Program Library (SPL) tokens on Coinbase Wallet.
Beyond Coinbase, Solana SPL Tokens Receive Mass Support
While SOL is the native token of the Solana blockchain, SPL is the token standard designed for the ecosystem, similar to Ethereum’s ERC-20 token standard. These SPL tokens are crucial to facilitating seamless integration with various Solana-based applications and platforms. In the long run, they foster the growth and development of the ecosystem.
This integration makes it possible for Coinbase users to trade more than 50,000 tokens on Solana. At the same time, it marks the American digital asset service provider’s increased support for Solana and its ecosystem. In the past, Coinbase has supported other Solana products including its staking program.
Increasing support for Solana and SPL tokens by @Coinbase❤️🔥 https://t.co/xxDUEbWiss
— Solana (@solana) April 16, 2024
Beyond Coinbase, some other crypto projects have equally listed the SPL tokens in the last few months. Leading Web3.0 hardware wallet Trezor announced its support for SOL and tokens designed using the SPL standard on its platform in December. The growing adoption of the SPL token contributed to the decision of Solana to introduce SPL “token extensions”.
Ordinarily, token extensions offer a comprehensive suite of solutions that are specifically designed to meet the unique requirements of businesses entering the blockchain realm. This extension is expected to revolutionize how developers, enterprises, financial institutions, and Solana-native development teams approach the integration of advanced token functionality.
Meanwhile, the number of new SPL tokens on the Solana network surged a few weeks ago with over 7,800 tokens being added daily. Apart from demonstrating increased interest and activity within the Solana ecosystem, it also drives innovation and development in the network.
The move from different wallets to support SPL tokens suggests investors’ confidence and enthusiasm towards Solana products.
Solana Seeks Solution to Network Congestion
This Coinbase Solana integration comes amid growing congestion woes facing the protocol. The network has recently been plagued by congestion that has threatened its operations.
These congestion are believed to be driven by the recent memecoin frenzy that has led to increased activity in the Solana network. Austin Federa, Head of Communications for Solana Labs, believes that the primary cause of the problem is the use of software systems that aren’t robust enough to withstand the amount of traffic targeted at it.
According to data from crypto analytics platform Dune, about 75% of all non-vote transactions failed on the Solana blockchain on April 4.
A few potential solutions are being considered by the Solana team. Federa confirmed the contribution of multiple developers to solve the congestion menace plaguing the network. Consequently, Anza, the developer of one of Solana’s Agave validator clients, announced the release of a solution patch which is a new version v1.18.11 on devnet to alleviate the network’s congestion difficulties.
The Stake-Weighted Quality of Service (SWQOS) is another feature that Solana is prioritizing in a bid to solve is congestion issues. All these alternative solutions are hinged at supporting the major network upgrade it recently launched on the mainnet.
These upgrades are vital to support the massive traffic Coinbase is set to bring to the Solana ecosystem.