In an exciting development, Solana’s SOL is inching closer to the $100 mark, propelled by the ongoing frenzy surrounding meme coins and the blockchain’s reputation for fast transactions and low fees. This surge marks the third week of heightened enthusiasm for Solana, drawing attention for its efficient blockchain capabilities and a surge in meme coin issuances.
Metrics indicate that Solana is emerging as a significant attraction for on-chain traders, with trading volumes and network fees surpassing those of Ethereum, typically the leader in this aspect, on a seven-day rolling basis. The value locked in Solana applications has surged, jumping from $400 million in November to an impressive $1.3 billion, reaching levels last seen in July 2022.
These factors have played a pivotal role in driving year-to-date gains for SOL to over 830%, with substantial growth witnessed in the past two months alone. Remarkably, this buying momentum has persevered despite significant selling pressure from the bankruptcy estate of FTX, a crypto exchange holding billions of dollars worth of SOL. As of the European morning, the token was trading around $94, according to CoinDesk Indices data.
The resurgence of the dog-themed meme coin bonk (BONK) in late November triggered renewed attention, with an astounding 1,000% surge. This sparked a flurry of other meme coins, including dogwifhat (WIF), which witnessed early retail buyers enjoying gains of over 10,000% in a brief period.
Even in the past 24 hours, WIF has added another 35% to its market capitalization, showcasing unabated momentum amidst the significant hype in crypto circles.
Notably, opportunistic developers have flooded the market with thousands of meme coins, most starting from a very low market capitalization and quickly gaining value into the millions.
Analysts remain optimistic about SOL’s performance in the weeks ahead, anticipating sustained interest from retail investors as a driving force behind the token’s growth.
“Solana is recovering more steadily than most major competitors and shows more interest in it in the community, which promises to keep its performance above the market in the coming months,” notes Alex Kuptsikevich, FxPro senior market analyst. He further highlights a 250% surge in Google searches for Solana over the past two months, indicating growing user interest in tandem with the explosive growth of the asset and related meme coins.
“The Solana blockchain continues to grow strongly with the background of new protocols and related airdrops,” adds Kuptsikevich, referring to recent airdrops like BONK, ACS, and JTO to Solana users in the past weeks. The dynamic landscape of Solana, coupled with the ongoing meme coin excitement, positions it as a significant player with potential for continued growth.
