The remarkable rise of Solana (SOL)
Solana’s native token, SOL, has experienced a meteoric rise, surpassing XRP for the first time to become the fifth largest cryptocurrency by market capitalization. According to CoinMarketCap, SOL’s market cap reached a 20-month high of $33.7 billion. This impressive surge comes despite recent selling pressure due to FTX’s collapse and is largely attributed to the growth of its decentralized finance (DeFi) ecosystem and the craze for memecoins.
The memecoin frenzy on Solana
The growing interest in memecoins, particularly Bonk, has played a crucial role in increasing the value and trading volume of Solana. With a market cap exceeding $1.2 billion, Bonk has encouraged traders to buy SOL as an underlying asset before exchanging it for anything and everything. The exchanges of SOL for these memecoins generate significant buying pressure on the cryptocurrency.
The Solana network has shown signs of improvement in terms of stability, overcoming a series of outages last year. Furthermore, Solana has distanced itself from FTX’s collapse, which had previously purchased $1 billion worth of Solana-based tokens before declaring bankruptcy. Currently, SOL is trading above $80, up nearly 10% in the past 24 hours, with a trading volume of $2.6 billion.
