In a significant development for the cryptocurrency community, Coinbase has successfully resolved a prolonged transaction backlog affecting Solana (SOL) deposits and withdrawals. The issue, which caused delays of up to 21 hours, stemmed from network congestion triggered by a surge in activity following the launch of the TRUMP memecoin—not from a Solana network outage, as initially speculated.
According to an update posted on January 22, 2025, Coinbase CEO Brian Armstrong confirmed that the backlog has been cleared. In a public message on X (formerly Twitter), he encouraged users whose transactions were canceled during the disruption to retry their transfers and extended a formal apology to affected customers.
What Caused the Solana Congestion?
The root cause of the slowdown was not a technical failure of the Solana blockchain, but rather overwhelming demand from decentralized applications (dApps) running on the network. On January 19 and 20, the launch of the Official Trump memecoin—marketed as TRUMP—sparked a buying frenzy among retail investors eager to participate in what many viewed as a politically charged digital asset.
This sudden spike in user activity led to congestion across multiple dApps built on Solana, indirectly impacting centralized platforms like Coinbase that rely on the blockchain for deposit and withdrawal operations. While Solana itself remained operational, transaction processing times increased significantly due to resource strain at the application layer.
It's important to clarify: Solana did not go down. Instead, the ecosystem experienced what experts call “application-layer congestion,” where too many users interact with smart contracts simultaneously, creating bottlenecks in transaction propagation and confirmation.
TRUMP Memecoin Ignites Market Frenzy
The launch of the TRUMP memecoin acted as a catalyst for one of the most intense retail-driven rallies seen in early 2025. As traders rushed to acquire the token, Solana’s native cryptocurrency, SOL, experienced a powerful price surge.
On January 19, SOL hit a new all-time high of $293, driven by increased network usage and speculative trading. This momentum was reflected across key on-chain metrics:
- Total Value Locked (TVL) on Solana surged to $13.9 billion, according to DefiLlama.
- Market capitalization for SOL climbed to approximately $127 billion.
- Daily network fees spiked to **$17.8 million** on January 19—the highest recorded level in recent months—before settling at a still-strong $11.7 million on January 21.
For context, average daily fees on Solana ranged between $2.7 million and $5.25 million throughout December 2024. The January spike underscores the dramatic increase in demand and transaction volume linked directly to memecoin speculation.
Search Trends Reveal Surge in Retail Interest
Beyond on-chain data, behavioral indicators point to a broader resurgence in retail participation in crypto markets.
Google Trends data shows that search queries such as “buy Solana,” “buy crypto,” “Coinbase,” and “crypto app” reached peak levels during the week of January 19. Notably, “buy Solana” hit a maximum interest score of 100 out of 100, signaling unprecedented public curiosity about acquiring SOL.
Such metrics are closely watched by traders and analysts as leading indicators of market sentiment. High search volumes often precede or accompany periods of strong buying pressure, especially when driven by social media trends or celebrity-linked projects like the TRUMP memecoin.
App store rankings further validate this trend. At the time of reporting, the top three finance apps on Apple’s App Store were all cryptocurrency platforms:
- Crypto.com
- Coinbase
- Moonshot (a memecoin-focused trading app)
This shift highlights how mainstream attention continues to gravitate toward accessible crypto entry points—especially those tied to cultural moments or viral assets.
FAQ: Understanding the Solana-Coinbase Backlog Event
Q: Was there a Solana network outage?
No. Despite widespread speculation, Solana did not experience a network outage. The issue originated from application-layer congestion due to excessive traffic from dApps, particularly those involved in the TRUMP memecoin launch.
Q: Why did Coinbase transactions take so long?
Coinbase relies on the underlying blockchain to confirm deposits and withdrawals. When Solana-based dApps consumed large amounts of network capacity, it indirectly slowed down transaction processing for exchanges using the network.
Q: Are my funds safe if I use Coinbase?
Yes. Coinbase confirmed that no user funds were lost during the delay. The backlog affected only processing times, not fund security. Transactions were either delayed or canceled—never compromised.
Q: How can I avoid similar delays in the future?
Consider timing your transactions outside peak volatility periods. Monitoring network health via tools that track gas fees and congestion can help. Using alternative settlement layers or exchanges with multi-chain support may also reduce dependency risks.
Q: Did the TRUMP memecoin affect other blockchains?
While the primary impact was observed on Solana due to the token’s deployment on that chain, secondary interest spilled over into other ecosystems. However, no major congestion was reported on Ethereum, BNB Chain, or other major networks.
Q: Will memecoins continue to influence blockchain performance?
Given their ability to drive sudden user influxes, memecoins will likely remain wildcards in network stability. Projects with strong community engagement but limited scalability planning pose risks during launch events.
Lessons Learned: Infrastructure Meets Hype
The incident underscores a growing challenge in the crypto space: scalable infrastructure must keep pace with viral demand. While Solana is known for its high throughput and low fees, even robust blockchains can face strain when human behavior amplifies usage beyond expected norms.
For exchanges like Coinbase, this event serves as a reminder of the importance of transparent communication, resilient backend systems, and proactive user guidance during high-stress periods.
For retail investors, it highlights the need for patience and awareness—especially when participating in hyped launches that can temporarily disrupt normal service flows.
As the line between culture and crypto blurs further, platforms must prepare not just for technological evolution, but for social ones too.