Following an 80% surge in December, memecoins on Solana have plummeted in value. I don’t understand.
There has been a noticeable decline in demand for Solana network memecoins over the past week, with the values of popular tokens continuing to plummet and fresh tokens failing to draw enthusiastic communities.
Since its listing on major exchanges in December, the DOGE-themed coin BONK has seen a precipitous decline of almost 70% from its 1,000% three-month surge.
Meanwhile, after creating buzz for promising early investors 10,000% returns on investment, Dogwifhat—the cryptocurrency whose picture of a dog wearing a hat captured the eye of crypto holders—has plunged over 80%.
Popcat (POPCAT) and Chipi (CHIPI) are two more obscure tokens with a feline motif; both have plummeted more than 90% from their highs, but their communities are still hoping for a comeback.
The December Solana Ecosystem was a Blast!
In December, the Solana ecosystem had a surge as the BONK coin started to soar over 1,000% in the weeks preceding its inclusion on prominent exchanges like Binance and Coinbase.
The network also seemed to be getting more active; after slow sales in October, the price of Solana’s Saga phone jumped to above $5,000, and the market value of Solana coin swiftly surpassed that of other significant tokens.
With trading volume and network costs topping Ethereum—often the highest on a seven-day time frame—Solana also became a big magnet for on-chain dealers.
The Solana Network: A Hot Topic
The price of the SOL token has risen from $38 in early November to about $120 now, thanks to the enthusiasm around this blockchain and its quick transactions, cheap fees, and memecoin launch lottery. Network activity has been raised since early December.
Additionally, from $400 million in November to $1.3 billion in July 2022, the value locked in Solana applications reached its prior level.
Making a Profit Starts
Late December saw the beginning of profit-taking as prices rose, with fresh releases failing to acquire pace and money clearly shifting to possibilities on other blockchains.
The sun Evaluation of Costs
Much of the gains made by Solana have been squandered due to its inability to continue its surge.
Important Backing: $78
Rounded Off: $104.
As soon as SOL’s price dropped below $100, sellers began to exert more control over the market. Breaking below the uptrend last weekend, the rise that started in October 2023 came to an end.
Now that purchasers are playing defense, $78 is the first critical support they may use to stop the correction in its tracks. Having served as an obstacle on the ascent, this level can now be used as a base.