HomeNewsSolana Meme Coin Bubble Bursts: 70%+ Price Drop in a Week

Solana Meme Coin Bubble Bursts: 70%+ Price Drop in a Week

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  • Solana’s meme coins, including bonk (BONK) and Dogwifhat, witnessed substantial price drops, with BONK declining over 70% and Dogwifhat nearly 80% from their December peaks.
  • The Solana ecosystem experienced a surge in activity and valuation in December, but recent profit-taking and lack of momentum in new launches led to a shift in capital.

The Rise and Fall of Solana’s Meme Coins

The Solana ecosystem, known for its high-speed transactions and low fees, recently witnessed a significant downturn in its meme coin market, following an initial frenzy that saw massive price surges and listings on top exchanges.

The December Surge and Subsequent Decline

In a remarkable run during December, the dog-themed token bonk (BONK) saw its price rally by more than 1,000% over three months. This surge culminated in the token being listed on influential cryptocurrency exchanges like Binance and Coinbase. However, this peak was short-lived, as BONK experienced a sharp decline of over 70% from its December high.

Similarly, Dogwifhat, another meme coin that captivated the crypto community with its whimsical imagery of a dog wearing a hat, plummeted nearly 80% after initially providing early holders with returns exceeding 10,000%.

Other Meme Coins and the Solana Ecosystem

The trend wasn’t isolated to these two tokens. Other lesser-known Solana-based meme coins like popcat (POPCAT) and chipi (CHIPI), both cat-themed, also suffered dramatic declines of more than 90% from their lifetime peaks. Despite these drops, their respective communities remain hopeful for a revival.

The initial boom in December not only propelled these meme coins but also invigorated the entire Solana ecosystem. The network experienced heightened trading volumes and network fees, surpassing even those of Ethereum. This surge also saw the price of the SOL token nearly triple from $38 in early November to almost $120.

The Current State of the Solana Network

Despite the initial excitement, the latter part of December marked a turning point. A wave of profit-taking ensued as valuations reached unsustainable levels, and newer launches struggled to gain traction. This shift led to a redirection of capital towards other blockchains, indicating a cooling of interest in Solana’s meme coins and, by extension, the network itself.

The total value locked on Solana applications, which had risen to $1.3 billion from $400 million in November, mirrored the highs seen in July 2022. However, the recent downturn in the meme coin market could signal a broader reassessment of the network’s future prospects and the sustainability of such rapid growth driven by meme coin popularity.

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Bhushan Akolkar
Bhushan Akolkar
Bhushan is a FinTech enthusiast and possesses a strong aptitude for understanding financial markets. His interest in economics and finance has drawn his attention to the emerging Blockchain Technology and Cryptocurrency markets. He holds a Bachelor of Technology in Electrical, Electronics, and Communications Engineering. He is continually engaged in a learning process, keeping himself motivated by sharing his acquired knowledge. In his free time, he enjoys reading thriller fiction novels and occasionally explores his culinary skills. Business Email: info@ethnews.com Phone: +49 160 92211628