Solana-Based Memecoins Buck Market Trend with Notable Uptick Amid Broader Crypto Downturn
Summary:
Despite the ongoing correction in the broader crypto market in April, Solana-based memecoins have been going in a positive trajectory, with the total market cap rising 4.2% to $8.261 billion. This growth has been fueled by significant gains from tokens such as Bonk (BONK) and Popcat (POPCAT). The highest-valued Solana meme token, Dogwifhat (WIF), saw an uptick of 1.4%, taking its market cap to $3.185 billion. This bullish behavior, despite a wider market downturn, illustrates the increasing importance and genuine engagement in the Solana ecosystem. Meanwhile, Solana's own SOL token experienced a dip following a rally that began on April 17.
While a majority of the cryptocurrency market has seen a downward trend in April, memecoins within the Solana sphere appear to be treading an alternate route. Data from CoinGecko reveals a sharp upsurge in the total market cap of Solana memecoins, posting a 4.2% surge to $8.261 billion in the past day. Bonk (BONK) experienced the highest increase, with a growth of 15.2% within a 24-hour span and 8.7% within the hour, while Popcat (POPCAT) witnessed growth rates of 10.7% and 214% over the day and week respectively.
Standing as the most valuable Solana-based meme token, Dogwifhat (WIF), experienced a 1.4% upsurge within the day and a subsequent 5% jump in an hour, elevating its market capitalization to $3.185 billion. Of note is the fact that WIF still makes up almost half of Solana's total memecoin market volume.
Crypto experts often observe a pattern with memecoins experiencing a surge upon introduction, followed by a steep fall when Bitcoin crashes. Mert Mumtaz, the CEO and co-founder of Helius Labs, noted memecoins' importance from a user acquisition viewpoint and their role in network stress tests. He also highlighted how these digital assets have significantly bolstered Solana's long-term growth, in a similar way to NFTs in the previous year.
CoinGecko's recent report pointed out that the memecoin sector has been the most profitable so far this year. The optimism surrounding Solana's memecoins mirrors a wider inclination of funds moving back into riskier assets as the market braces for a sustained recovery post-April 20 Bitcoin halving.
The wider market pullback amidst the rally of Solana memecoins highlights Solana's standing as an integral Layer 1 ecosystem. This suggests that the market sentiment is not purely speculative but is backed by high user engagement and development activity. High trading volumes and growing usage of DeFi applications validate Solana's potential.
DeFiLlama's data reveals that Solana's volume elevated to $1.5 billion on April 25, from the $840 million on April 7. Meanwhile, The Block's data illustrates an ongoing increase in the number of active addresses on the Solana network.
However, Solana's currency, SOL, didn’t mirror the memecoin gains and saw a slight dip after its rally that started on April 17, with a fall of 1.15% in the past 24 hours bringing its value down to $147. Trading volumes on all major centralized crypto exchanges also fell by 56% after reaching a six-week high of $8.9 billion on April 13, according to CoinMarketCap. This content doesn't offer investment advice or recommendations and readers are advised to make their own informed decisions.
Published At
4/26/2024 1:00:00 AM
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