Brian Armstrong, the founder and CEO of Coinbase, acknowledged that the recent surge in memecoin trading has put pressure on the leading U.S.-based cryptocurrency exchange. Due to the significant increase in trading volume for memecoins launched on the Solana 
$72 network, Armstrong admitted that there have been delays in transactions on Coinbase related to Solana.
Coinbase’s Issues with Solana
In response to a customer’s complaints about transaction delays, Armstrong stated, “Our team is currently working to scale our Solana infrastructure – we did not expect such a surge in activity over the past few days.” This reflects the challenges faced by the exchange in managing the heightened demand.
Memecoin Trading and Activity on the Solana Network
After another customer reported that their SOL transfers had not been completed for two days, Armstrong reassured them, saying, “This is a scaling issue to handle the recent increased activity on the Solana chain, not solvability. Customer funds are 100% backed and regularly audited by Deloitte. Our team is working diligently to resolve this.” This clarification highlights the robust support for customer funds amid operational hurdles.
According to the blockchain data aggregation platform DefiLlama, Solana recorded a trading volume of $22.25 billion in the last 24 hours, while Ethereum (ETH) 
$1,847 only reached $6.21 billion. Additionally, Solana collected $35.5 million in fees, compared to Ethereum’s $15.7 million.
Interestingly, just days before the presidential inauguration, former President Donald Trump and First Lady Melania Trump launched their own memecoins on the Solana network. As of the latest updates, Solana is trading at $251, reflecting a 5.4% increase in the past day.
These developments indicate that the Solana network is struggling to meet the increasing demand from memecoin trading. It is crucial for large exchanges like Coinbase to rapidly scale their infrastructures to adapt to the volatility in the cryptocurrency market. The high trading volume and rising transaction fees on Solana can be seen as indicators of the network’s growing popularity.
