The crypto market experienced corrections across the board in April, but memecoins in the Solana ecosystem are defying the trend. Data from CoinGecko shows that the total market capitalization of memecoins on Solana has increased by 4.2% in the last 24 hours, reaching $8.261 billion.
One of the top performers is Bonk (BONK), which has risen by 15.2% in the last 24 hours and 8.7% in the last hour. Popcat (POPCAT) also saw double-digit gains, with a 10.7% increase in the last 24 hours and a staggering 214% increase over the last seven days.
The leading memecoin on Solana by market value, Dogwifhat (WIF), has seen a 1.4% price increase in the day and a 5% increase in an hour, pushing its market cap to $3.185 billion. It is worth noting that WIF still holds nearly half of the total memecoin market share on Solana.
Many crypto analysts believe that memecoins often experience a surge in value upon launch but can then sharply decline when the price of Bitcoin crashes. Mert Mumtaz, the co-founder and CEO of Helius Labs, emphasized the significance of memecoins for the industry and the networks that support them. He stated that memecoins are effective in getting more people involved in crypto and stress testing the network.
According to a recent report by CoinGecko, memecoins have been the most profitable narrative in the crypto sector so far this year. The bullish performance of Solana memecoins aligns with the broader trend of investors moving back into riskier assets as the market prepares for a sustained recovery following the Bitcoin halving event on April 20.
The surge in Solana memecoins during a market pullback highlights the growing importance of Solana as a layer 1 ecosystem. This indicates that investor sentiment towards the blockchain is based on genuine user engagement and high development activity, rather than speculation. The blockchain has shown its potential through high transaction volumes and the growth of DeFi applications.
Data from DefiLlama reveals that the volume on Solana has reached $1.5 billion on April 25, up from $840 million on April 7. The blockchain’s all-time high volume was recorded at $3.8 billion on March 15. Additionally, the number of active addresses on the Solana network continues to rise, surpassing figures from previous years.
While memecoins have been performing well, the price of Solana (SOL) has experienced a slight retracement after its rally that began on April 17. SOL’s price has decreased by 1.15% in the past 24 hours, reaching $147.
The trading volume on major centralized cryptocurrency exchanges has also dropped by 56% from a six-week high of $8.9 billion on April 13 to $3.9 billion. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment or trading decisions.