Airdrop and meme coin hype pushes Solana (SOL) up against the market
Solana experienced a slight dip after recently crossing the $100 threshold, now trading at $109.20, a decrease of 11% in the last 24 hours. Despite this dip, Solana has impressively maintained a value over $100 since surpassing that level last Saturday. At the time of writing, SOL is priced at $108. This growth is reflective of a wider upswing in the cryptocurrency market, with Solana now ranked as the fourth largest crypto asset by market cap, inciting significant trading activity. In the last day alone, its trading volume soared to $5.6 billion, as reported by CoinGecko.
Remarkably, Solana achieved its highest single-day trading volume of the year at $6.2 billion and is poised to surpass this record soon. Its current trading volume is more than double that of Binance’s BNB token, a key utility token for the exchange. Solana has recently overtaken BNB in market cap, securing the fourth spot on CoinGecko’s rankings.
SOL price and the market
Concurrently, Bitcoin and Ethereum, the two most prominent crypto assets, have each seen a decline of 4%. Currently, Bitcoin is valued at $41,861.48, while Ethereum trades at $2,197.27. Both Bitcoin and Ethereum have experienced rallies recently, spurred by the anticipation of potential spot ETF approvals. The SEC is expected to decide on several Bitcoin ETF applications in the upcoming weeks, following fresh submissions of Ethereum ETF applications.
Solana’s recent success is particularly striking given its previous association with the now-defunct FTX crypto empire and the controversy around Sam Bankman-Fried. Despite the challenges stemming from FTX’s bankruptcy in November 2022, Solana has witnessed an impressive 880% growth year-to-date. This resurgence is underscored by increased network activities and a rise in new addresses on the Solana network.
In addition to institutional interest, meme coins associated with Solana have also been active. The Solana-based meme coin BONK, despite a recent drop, maintains a position in the top 100 assets. BONK reached a peak after being listed on Gate.io, though it remains highly volatile, currently trading at $0.00001615, down 15% from yesterday.
Another new entrant in the meme coin space is Dogwifhat, a dog-themed coin that peaked at $0.33 on Friday, shortly after beginning trading on December 13. However, it has since lost momentum, currently priced at $0.15 per WIF token, a 30% decrease in the past day.
The Solana meme world
Further on BONK, a meme coin based on the Solana blockchain featuring a dog theme. It has seen a remarkable 370% increase in value over the past month. Additionally, Dogwifhat ($WIF), has quickly amassed a market capitalization of over $300 million as 2024 approaches.
Dogwifhat Coin, which debuted on the Solana blockchain in November, is a community-driven project that’s rapidly gained popularity. Its concept is simple yet captivating, centering around a dog wearing a hat. Despite its playful concept, Dogwifhat has impressively reached a market cap of $300 million.
This surge in interest in meme coins isn’t limited to Dogwifhat. Other emerging meme tokens, have seen a rapid increase in presale activity. Similarly, tokens such as Coq Inu and CorgiAI have also been trending and experiencing growth, prompting discussions about the potential onset of a ‘meme coin season.’
A key aspect of Bonk and Dogwifhat’s success is their choice of blockchain. Both are built on the Solana platform, known for its lower gas fees compared to older blockchain technologies. This trend is also seen with other new coins, which operate on the BSC, highlighting a shift towards more cost-effective and efficient blockchain solutions for meme coins.
In contrast, older meme coins like Dogecoin and Shiba Inu, which are based on Bitcoin and Ethereum’s ERC-20 token standard respectively, often face challenges due to higher gas fees, especially during peak demand times. This comparison underscores a growing preference for newer blockchain technologies among meme coin developers and investors, seeking both innovation and cost-effectiveness.
