Solana ‘meme coin season’ tokens see profits up to over 7,300%
Excitement about Bitcoin price rises, more liquidity in the market and BONK performance could be the triggers behind this movement.
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Solana has been gaining traction in December. The total traded volume in Solana’s decentralized exchanges (DEX) reached $ 1.2 billion in the past 24 hours, surpassing Ethereum’s $ 1.1 billion, according to DefiLlama. Analyzing the past 7 days, Solana DEXes are $ 444 million short of Ethereum mainnet volume, which is historically close.
The reason behind this rise in Solana’s trading activity is a ‘memecoin fever’, prompted by the token known as BONK. In December, BONK rose 572% until it peaked on the 15th day of the month. Even after a sharp 43% fall, the memecoin is still 327.4% up from December 1.
The movement was enough to create waves in the ecosystem and make liquidity flow to new tokens, like ‘Dogwifhat’ (WIF). Created on December 13, the token skyrocketed by 7,363% within six days. Even after a 43% pullback, WIF is up 2,449% in its first week.
The memecoin fever could be a result of more liquidity entering the market in the fourth quarter of 2023. From October 1 to December 19, $ 5.5 billion in stablecoins entered the crypto market, shows data from Artemis Terminal. This is the first sign of growth from stablecoins market cap since November 15, 2023.
Another reason behind the interest in memecoins might be the 63% rise in Bitcoin’s price in the fourth quarter. After a rally fueled by the expectation of approval for the first ETF indexed to Bitcoin’s spot value, traders got excited to look for more profitable crypto assets on the market.
The third memecoin that benefited from the current market status was Ribbit (RBT). The RBT token grew 865.5% in value between December 1 to 19, when its price met its peak. The all-time high was met with a 77% correction, but RBT is still 135% up from its December 1 price level.
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