Memecoins
A disastrous June for memecoins on the Solana blockchain
4:47 p.m. ▪ 3 min read ▪ by Mikaia A.
Memecoins, cryptocurrencies based on jokes or popular themes, have a well-known tendency: they quickly boom and then crash just as quickly. Last June, the Solana blockchain became a magnet for these ephemeral cryptocurrencies, with a flood of new cryptocurrencies inspired by celebrities. Unfortunately, most of them collapsed in value shortly after their launch.
Rapid rise and steep fall of memecoins on Solana
Since Q1, the Solana blockchain has experienced A memecoin proliferationincluding celebrity tokens. Cryptocurrency fans have seen a frenzy of launches, with 30 new coins featuring influential figures.
However, The party was short-lived. Solana Statistics watch CA 94% of these memecoins lost their value in one monthand almost half of them saw their activity drop by 99% compared to their peak.
- 94% drop in one month;
- 50% lost 99% of their value.
This volatility highlights the risks inherent in investing in memecoinsoften inflated by celebrity endorsements and speculation.
Yet despite these spectacular failures, the Solana community remains vibrant, continually attracting memecoin enthusiasts with projects like Sealana, which raised $150,000 in its pre-saleor Base Dawgz, which offers innovative staking and profit sharing mechanisms.
Crypto projects on Solana: between innovations and precautions
Even though many memecoins are crashing, Some projects on Solana manage to capture attention with their originality. Sealana, for example, stood out with a successful pre-sale and an active community.
In addition, projects established as Dogwifhat and Bonk demonstrate that it is still possible to make substantial gains with the right investments.
However, caution is still required. Investors should navigate this unpredictable world with caution. The easy creation of new tokens on Solana, with more than 500,000 tokens issued in Mayencourages exploration while increasing the risk of encountering short-lived projects.
THE low transaction costs and the network speed attract traders, but every investment in memecoins remains a gamble.
The descent of memecoins was already the subject of a warning from Santiment earlier this month. The phenomenon is a reminder of the dangers inherent in these volatile investments, despite the enthusiasm they generate.
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Mikaïa A.
The blockchain and crypto revolution is underway! And the day the impacts will be felt on the most vulnerable economy in this World, against all hope, I will say that I had something to do with it
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.