- SOL surpasses $90 billion market capitalization.
- Solana hits all-time highs in network volumes and fees amid meme coin surge.
- SOL comes closer to its ATH of $260, recovering from FTX collapse.
The cryptocurrency sector is witnessing a bull market in 2024, marked by the resurgence of many established blockchains. However, the spotlight has been on Solana (SOL), known for its speed, efficiency, and burgeoning ecosystem, which has shown remarkable price performance.
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Recently, Solana has experienced a major surge, not just in its token price, which crossed the $200 mark for the first time since November 2021, but also in its overall market capitalization, network activity, and user engagement. This resurgence is largely fueled by the meme coin frenzy that has gripped the cryptocurrency community.
What’s Driving Solana’s Surge in 2024
On Monday, March 18, Solana’s price reached $206.16, contributing to a market capitalization of $92.251 billion. These valuations place Solana among the top four largest cryptocurrencies today, surpassing BNB’s valuation.
Solana’s impressive surge in 2024 is highlighted by the fact that the token has surged 800% since March last year. Moreover, the surge was accompanied by a similar rise in usage metrics. As of Sunday, March 17, the Total Value Locked (TVL) in Solana has reached $4.341 billion, up 2000% from just $210 million on January 1, 2024.
This is complemented by the market capitalization of stablecoins within the network, which is $2.649 billion. The network’s financial health is further evidenced by its revenue and fees; with $3.82 million collected in fees and $1.91 million in revenue over the past 24 hours, Solana showcases its ability to generate significant economic activity.
The Catalysts Behind Solana’s Meteoric Rise
The likely catalyst for Solana’s rise is the growing popularity of its native memecoins. For instance, since its launch in December of last year, Dogwifhat (WIF) has risen from $0.1 to $2.7, registering an increase of 1500% increase. Bonk (BONK) also saw a significant increase in that period, posting yearly returns of 3700%. More recently, Solana saw a surge of a new token Book of Meme (BOME), up 1348.72% since its launch on March 14.
Solana’s infrastructure facilitates the easy creation and trading of these digital assets, contributing to their proliferation. The blockchain’s low fees and high transaction speeds are particularly well-suited for the high-volume trading that meme coins often experience. This also highlights a growing community of memecoin traders on Solana, fuelling the market volume.
However, it is important to note that these investments are by their own nature, speculative and hype-driven. Without clear utility, their value relies completely on what people are willing to buy them for. For that reason, it is unclear whether Solana’s growth can be sustained by memecoins in the long run. This is especially true when the current hype cycle inevitably ends.
On the Flipside
- While there is upside potential of meme coin trading on Solana is undeniable, the market for these coins is highly volatile.
- The blockchain space is competitive, with several platforms vying for market share.
Why This Matters
Solana’s rise reflects the growing demand for scalable, efficient, and developer-friendly blockchain platforms supporting the next generation of decentralized applications.
Read more about Solana’s strong performance:
Solana Gains 7% Despite Market Downturn: What’s Next for SOL?
Read more about Bonk’s prospects as a memecoin:
