- SOL’s market cap is near $42 billion, briefly outpacing BNB.
- Solana saw a huge jump in just 24 hours, boosted by memecoin craze.
- TVL of the Solana ecosystem is exploding.
Just one year ago, many pronounced Solana a dead project. After the FTX collapse, it was among the tokens that were hit the hardest. Since then, Solana has recovered to its pre-FTX collapse levels and then some.
Recently, Solana briefly surpassed Binance Coin (BNB) to become the fourth-largest cryptocurrency by market capitalization. This came after the expansion in Solana’s decentralized finance (DeFi) market, fuelled by memecoin frenzy.
Solana Surges to Top Four, Highest Spot Ever
On Friday, December 22, Solana saw a surge of more than 20% in less than 24 hours. This placed it at $42 billion in market capitalization, briefly overtaking Binance’s BNB coin.
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Alongside the price surge, there was a noteworthy increase in the trading volume and open interest for Solana. The trading volume for SOL contracts jumped by 32%, and the open interest reached $1.34 billion.
This significant surge can be attributed to several factors, notably the meme token craze driving Solana’s DeFi activity. For one, Solana’s native token, BONK, has seen a remarkable surge, driving DeFi activity. As a result, the Total Value Locked (TVL) on Solana’s blockchain leaped past $1.3 billion.
The BONK phenomenon has also indirectly influenced Solana’s market valuation. As more users flock to the Solana network to participate in the BONK craze, the increased demand and transaction volume on the network can positively impact SOL’s price.
How Bonk Boosted Solana
Since its listing last year, Bonk has become a viral phenomenon, surging 17427.91$%. However, the token started picking up pace rapidly in November this year.
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It is unclear what ultimately caused it to surge. Memecoins are subject to mass market psychology that’s hard to analyze. However, notable catalysts were the listings on Coinbase and Binance, earlier this month.
On the Flipside
- Despite its surge, bankrupt FTX still holds millions in Solana tokens, most of which will hit the market in 2025.
- Meme coins are controversial due to their perceived focus on community hype rather than real utility.
Why This Matters
Solana’s surge, thanks to Bonk, shows just how unpredictable the crypto market can be. That meme-investing retail traders can make such a big impact shows that the industry is still far from its ultimate potential.
Read more about the case for the Bonk memecoin:
Here’s Why Bitcoin Whales Bet on BONK to Surpass SHIB
Read more about how the Bonk token boosted Solana crypto phone sales:
Solana Saga Cancels Orders as BONK Craze Depletes Inventory
