The meme coins on the Solana ecosystem have been skyrocketing since December last year, but the hype seems to be fading now. The price of BONK has plummeted by over 70% in less than a month, while meme coins like WIF, POPCAT, and CHIPI have seen drops of 70% to over 90%.
Since mid-October last year, the public blockchain Solana (SOL) has been surging. Meme coins on the Solana network have also become a market hot spot, with BONK, a meme coin featuring dogs on the Solana network, experiencing a price increase of over 1000% in just three months and being listed on mainstream exchanges such as Binance and Coinbase.
However, the hype around meme coins on the Solana network seems to be subsiding. According to data from CoinGecko, BONK reached a new all-time high of $0.00003416 on December 15 last year, but it has been continuously dropping since then and is currently at $0.00001023, a decrease of over 70% in less than a month.
Furthermore, Dogwifhat (WIF), another lesser-known meme coin on Solana, has also experienced a decline of over 76% since reaching its all-time high of $0.331 on December 22 last year. It is currently trading at $0.07911. Dogwifhat gained popularity for bringing over 10,000% returns to an early investor.
Other lesser-known meme coins on the Solana network, such as Popcat (POPCAT) and Chipi (CHIPI), have also seen significant drops. Popcat has plummeted over 88% from its historical high of $0.04823 on December 22 last year, while Chipi has dropped over 93% from its historical high of $0.001406 on December 25 last year.
Is the hype around Solana fading? Since early December last year, the speculation surrounding Solana’s fast transactions, low fees, and the issuance of a large number of meme coins has seemingly led to a surge in network activity and caused the price of SOL to skyrocket. The price broke through $126 on December 25 last year, reaching a new high since April 2022.
At the same time, the Total Value Locked (TVL) on the Solana network has been continuously growing. The TVL increased from $400 million in early November last year and reached a milestone of $1.53 billion on January 2 this year, the highest level since August last year.
However, the TVL on Solana has been declining in recent days and is currently at $1.25 billion. This may be due to the lack of sufficient momentum provided by new products in the Solana ecosystem after the crazy growth of SOL valuation, leading funds to visibly shift towards other blockchains.
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