Memecoins
Solana Coins Rise Despite Crypto Market Decline
Solana meme coins are showing remarkable growth, although many top cryptocurrencies are suffering heavy losses.
The meme coin segment is doing much better than other cryptocurrencies, according to data from CoinGecko.
Source: CoinGecko
Dog hat (Wireless), the largest coin by market capitalization based on the Solana blockchain, increased by 18% in the last 24 hours. Popcat (POPCAT) rose 61%, Jeo Boden (BODEN) gained 53% in price, Slerf (SLERF) jumped 16% and Wen (WEN) is up 28%.
These gains stand in stark contrast to the broader cryptocurrency market, which has seen more subdued performance. After falling below $57,000, Bitcoin has recovered slightly and is trading around $59,000. Meanwhile, the capitalization of the coin sector on Solana grew 14.7% and is now valued at $7.4 billion.
Analytics platform Cryptonary has noted the current market enthusiasm for meme coins.
If your crypto coins haven’t gone up at least 500% year-to-date or double digits today, you’re in the wrong coins.
The Memecoin supercycle is in full swing pic.twitter.com/9BzNZiPHXg
– Cryptonaire (@cryptonaire) May 2, 2024
However, this market segment has its dangers. A recent investigation by crypto detective ZachXBT find only 12 projects with Solana coins were abandoned, costing investors $26.7 million. For example, the I Like This Coin (LIKE) project raised approximately $7.8 million from investors, subsequently declining by more than half of its initial value.
Eddy Lazzarin, CTO of A16z, also spoke negatively on the meme coin sector. Lazzarin added that meme coins undermine the long-term view of cryptocurrencies which keep many in this space and are not very interesting from a technical point of view.