Solana Memecoins Surge: SOL Soars 38% From Monday Lows
Date: 2024-08-08 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Solana memecoins have surged more than 30% in the past 24 hours, marking the most significant gain in the crypto space as the network’s main token, SOL, has recovered from its earlier loss in value.
Cat- and dog-themed tokens like POPCAT and WIF saw gains of up to 25% before retreating slightly. Smaller tokens like MUMU and CATDOG have surged 30%, according to the data. This contrasts with the decline of major memecoins on other blockchains, such as dogecoin (DOGE) and pepe (PEPE), which have fallen up to 5%, demonstrating investor preference for Solana-based tokens.
Trading volumes on the Solana network have more than doubled to over $3.3 billion, up from $1.5 billion on Monday, generating at least $750,000 in fees per day, according to DefiLlama. Pump, a platform popular for issuing new Solana-based memecoins, has seen fees increase to $535,000 over the past 24 hours, up significantly from under $300,000 on Monday. This suggests increased activity by traders and a higher level of risk.
SOL is up 7.5% to trade above $150 in the early hours of Wednesday morning European time, outpacing the overall gain of the CoinDesk 20 Index by 2.23%. Earlier on Monday, SOL fell from $145 to a low of $112 amid the broader market downturn, but the token has since led the gains among major cryptocurrencies.
The optimism surrounding the Solana ecosystem is fueled by the anticipated launch of a SOL exchange-traded fund (ETF), which could become the third cryptocurrency ETF available to professional investors in the U.S. after Bitcoin (BTC) and Ethereum (ETH).
“The possibility of an SOL ETF shows promising signs for investors, indicating mainstream adoption of SOL,” Lucy Hu, senior analyst at Metalpha, said in a Telegram chat with CoinDesk. “The rapid recovery in SOL’s value indicates renewed confidence in the broader crypto space as the market stabilizes.”
“SOL has proven its resilience through innovation, and memecoins continue to gain traction,” Hu added.
In early July, CBOE filed a 19b-4 with the U.S. Securities and Exchange Commission (SEC) requesting listing of potential Solana spot ETFs from VanEck and 21Shares, which were originally filed in late June.
This surge of interest and activity around Solana-based memecoins and the rise in the value of SOL highlights the growing investor attention to this ecosystem and its future prospects for the adoption of innovative financial instruments.
