Solana and Ethereum See Explosive Growth in January as Crypto Market Hits Major Milestones

The cryptocurrency market kicked off 2026 with remarkable momentum, as major blockchain networks recorded unprecedented activity levels while Bitcoin miners navigated challenging weather conditions and geopolitical tensions sent shockwaves through global markets.

Solana’s Daily Active Addresses Surge 115% Amid Token Launch Frenzy

The Solana ecosystem experienced a breathtaking surge in user activity throughout January, with daily active addresses skyrocketing by an impressive 115% as of January 28th. The network consistently maintained over 5 million daily active addresses during the latter half of the month, according to comprehensive data from Nansen analytics.

This explosive growth can be directly attributed to a renewed frenzy in memecoin minting, sparked by the launch of Anthropic’s groundbreaking Claude Cowork – an artificial intelligence agent capable of controlling user desktop environments. This revolutionary development enabled developers utilizing Solana-based token launchpad Bags to transform token launches into a high-speed, automated process.

The platform witnessed extraordinary fee generation, with daily fees reaching an astonishing $4.5 million on January 16th. For context, from September through December of the previous year, daily fees rarely surpassed five-digit figures and occasionally plummeted to mere hundreds of dollars. The platform’s success has been so significant that the number of tokens graduating from Bags has now overtaken the previously dominant Solana token launch platform Pump.fun.

Ethereum Network Activity Jumps 25% Following Major Upgrades

Ethereum’s network activity has experienced a substantial uptick, with daily active addresses increasing by 25% throughout January. This surge follows a series of critical network upgrades that have significantly improved blob sizes and dramatically reduced transaction fees. As of January 29th, average fees on the Ethereum network had dropped to less than $0.01, according to data from Etherscan.

The increase in activity comes after Ethereum successfully overtook prominent Layer 2 solutions Base and Arbitrum in terms of daily active addresses by the end of December. These upgrades are part of a comprehensive effort to “future-proof” the Ethereum network and ensure its long-term viability.

Ethereum co-founder Vitalik Buterin emphasized the network’s progress on January 12th, stating that Ethereum should ultimately pass what he termed the “walkaway test.” This concept suggests that the true measure of Ethereum’s success would be its ability to continue functioning and meeting user needs even without active developer intervention and monitoring.

US Bitcoin Miners Face Curtailment During Severe Winter Storm

Seven major Bitcoin mining operations across the United States found themselves in a precarious position as severe winter storms put unprecedented stress on the American power grid. Mining locations operated by industry giants including Riot, Core Scientific, CleanSpark, and Bitdeer are “structurally set up to act as flexible loads via utility demand response programs,” according to Matthew Sigel, head of digital assets research at VanEck.

While real-time curtailment confirmation remains pending, the model has already demonstrated its value during previous grid stress events. The storm, which has affected regions from the Midwest to the Northeast, has resulted in cancelled flights, dangerous travel conditions, widespread power outages, and tragically claimed at least 20 lives as of January 27th.

Southern states, typically unaccustomed to severe winter conditions and lacking critical infrastructure for such weather events, have been hit particularly hard. As of January 28th, approximately 400,000 people remained without power across Kentucky, Tennessee, Mississippi, Louisiana, and Texas.

Crypto Payment Adoption Reaches New Heights According to PayPal Report

Cryptocurrency is rapidly gaining traction as a mainstream payment method, with major payments processor PayPal reporting that four in ten merchants across the United States now accept crypto payments. This significant milestone was revealed in PayPal’s January report, which highlighted that crypto offers faster transaction speeds, enhanced privacy features, and attracts crypto-savvy customers.

PayPal’s vice president and general manager May Zabaneh emphasized the growing significance of crypto payments, stating, “What we’re seeing both in this data and in conversations with our customers is that crypto payments are moving beyond experimentation and into everyday commerce.” The report also revealed that an impressive 84% of surveyed merchants believe that crypto payments will become mainstream within the next five years.

Bitcoin Price Volatility Amid Greenland Geopolitical Tensions

Bitcoin’s price experienced significant volatility throughout January, briefly climbing toward the psychologically important $100,000 mark before falling back to around $87,000. This more than 10% decrease came amid escalating discussions surrounding the future of Greenland, an autonomous territory of Denmark.

The price volatility was triggered by former US President Donald Trump’s claims that the United States needs to control Greenland for security purposes and to counteract Chinese and Russian ambitions in the Arctic region. This stance was particularly controversial given that Denmark and the United States are both members of NATO, an organization specifically created to counter such ambitions.

Chris Beauchamp, chief market analyst at investing and trading platform IG, noted that “Cryptocurrencies offered no haven from the wave of selling that washed over global markets in response to Trump’s threat.” The incident demonstrated that Bitcoin, along with global markets generally, is still considered a risk-on asset rather than a safe haven during times of geopolitical uncertainty.

Key Market Indicators and Network Performance

Throughout January, the cryptocurrency market demonstrated remarkable resilience and growth despite facing multiple challenges. The surge in network activity across both Solana and Ethereum indicates strong user engagement and growing confidence in blockchain technology. The successful implementation of network upgrades and the increasing adoption of crypto payments suggest a maturing market that continues to evolve and adapt to user needs.

The winter storm’s impact on Bitcoin mining operations highlighted the importance of flexible load management and the critical role that cryptocurrency mining can play in grid stability. Meanwhile, the geopolitical tensions affecting Bitcoin’s price serve as a reminder of the asset’s continued correlation with traditional market risk factors.

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