Sol at $180 : Memecoin Craze fuels Solana price rally
Solana’s native token ,SOL,gained 12.1% from Oct. 11 to Oct 18 and the this upward movement was shown by data to be partly driven by demand for Memecoin.
Increased demand sum up to higher network volumes,fees, and total value locked.(TVL).
Trades are still contemplating the stability of the Memecoin and how the SOL’s price can continue to benefit from the surge in network activity .
While there isn’t an Organic Reason for the surging demands for these memecoins,its obvious that influential social media accounts direct traders’ attention to the tokens.
Ref: https://x.com/pwnlord69/status/1845206458767671670
The Memecoin Goatseus Maximus(GOAT) pumped toa market value of a whooping $400 million within a week,fueled by rumors of the launch of an artificial intelligence bot. In reality,the bot. Actually the bot rarely advertised the GOAT Memecoin ,Which was launched using Pump.fun,a decentralized application that manages technical aspects and liquidity provision for Solana tokens on Radium exchange.
Even more memecoins on the Solana network had a bright one as their prices rocketed in October with SPX600 (SPX) up 379%,Apu Apustaja (APU) RISING 170%, and FWOG gaining 134%. Notable gains above 90% were PUPS ALand MAGA (TRUMP), according to Cryptorank.io data. Attention will increase ,as the Memecoins increase in value,from social media.
Solana network activity supports a higher SOL price
The real question should be whether this movement will significantly impact SOL’s price,and how the performance of its competitors. (TVL) Total value locked is a crucial metric for this analysis,which measures the total funds deposited in the network’s smart contracts.
Solana TVL in SOL terms. Source: DefiLlama
Solana’s total deposits have trumped to a two year high,hitting 41 million SOL,up to 13% month-over-month. While in comparison ETHERIUMs TVL remained at 17.7 million ETH ,while BNB Chain’s TVL Also stagnated at 7.9 million BNB.
Highlights on Solana’s network include Raydium
Which saw a 70% rise in deposits over the past 30 days,and Sanctum ,which gained 32% in TVL.
Measuring deposits is important ,but to truly ascertain the demand for SO,one must analyze onchain activity .A decentralized exchange (DEX),for example,can record high volumes without necessarily having significant TVL. In this context, Solana’s impressive network activity recently secured its position as leader surpassing Ethereum over the past week.
Solana’s 43% weekly growth in DEX Volumes stands out among its direct competitors.Notably ,even Ethereum’s layer-2-solutions, which benefits from lower transaction fees, couldn’t match Solana’s performance . For instance Arbitrium recorded$3.74 billion in weekly volume,still 64% below Solana’s $11.16 billion.
While it’s a bit difficult to predict if the Memecoin Surge will persist,the data suggests SOL reaching $180 is Ultimately,Solana appears well positioned to capture growth in areas like Ai infrastructure ,web 3 applications ,gaming,prediction markets and more.
