Can the meme coin craze ignite a Solana price rally? 
Cryptocurrency Oct 19, 2024 Share
Memecoins have once again captured the cryptocurrency spotlight, with Solana (SOL) emerging as a key network supporting this growing trend.
Several memecoins on Solana’s blockchain have posted impressive gains recently, pushing the platform’s native token, SOL, up by 7% in a week. This recent price rally has been fueled by a surge in network activity, driven primarily by the memecoin frenzy on Solana.
The rise of memecoins on Solana
Among the various tokens making waves on Solana, Goatseus Maximus (GOAT), SPX6900 (SPX), Apu Apustaja (APU), and FWOG have garnered significant attention.
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These tokens are leading the charge in Solana’s memecoin scene, with each experiencing massive gains in October.
Of all the tokens, Goatseus Maximus (GOAT) has been a standout. Launched on Solana’s Pump.fun platform, GOAT surged to a market value of $400 million in just one week.
Rumors of an artificial intelligence bot tied to the token’s success played a major role in its meteoric rise, although the bot was simply a promotional tool.
At the same time, early investors in these memecoins have taken substantial profits.
For instance, On-chain analytics trackers like Lookonchain revealed how some investors turned small amounts of capital into millions of dollars in profits.
Notably, one investor spent 603 Solana worth approximately $80k and turned it into $2 million in just 6 days. These high returns highlight both the speculative nature and the profit potential in memecoin trading.
How the memecoin craze impacts Solana’s Total Value Locked (TVL)
While memecoins may lack strong fundamentals, their popularity has led to increased activity on Solana, pushing up key metrics such as Total Value Locked (TVL).
TVL measures the total amount of funds locked in a blockchain’s smart contracts and provides a good indication of overall network health.
Solana Total Value Locked. Source: DefiLlama
Solana’s TVL recently hit a two-year high, nearing 41 million SOL, marking a 13% increase month-over-month. This is a notable improvement compared to Ethereum and BNB Chain, whose TVLs have remained relatively flat during the same period.
Decentralized platforms on Solana, including Raydium and Sanctum, have reported notable increases in deposits, reflecting a surge in on-chain activity. This uptick shows the significant impact the memecoin trend is having on the broader Solana ecosystem, driving increased engagement and capital inflows.
Solana’s network activity and social media buzz
Aside from TVL, Solana has also outpaced Ethereum (ETH) in terms of network activity over the past week, with more transactions and decentralized exchange volumes recorded on its platform.
This strong performance has not gone unnoticed, as social media buzz around Solana has skyrocketed. Solana is now one of the most-discussed projects on social platforms, outperforming other top altcoins like XRP, Cardano (ADA), and SUI, according to sources.
This growing social media presence could further fuel the hype around Solana and its memecoins, creating a feedback loop that continues to drive both interest and price momentum for SOL.
SOL price analysis
Solana is currently trading at $156, with a 7% increase in a week.
Solana seven-day price chart. Source:Finbold
As long as network activity remains high and investors continue flocking to speculative tokens like GOAT, Solana’s price could continue to benefit.
However, whether the memecoin frenzy can deliver long-term value to the Solana network remains to be seen.