Solana Memecoins WIF and Bonk Rise by Double Digits: Here’s Why

Two Solana-based memecoins, Bonk (BONK) and Dogwifhat (WIF), saw substantial gains over the past 24 hours. BONK saw a 35% increase, while WIF climbed 19%, placing them among the top three gainers in the top 100 cryptocurrencies by market capitalization today. Only Hedera Hashgraph (HBAR) surpassed them, with a notable rise of 44% during the same period.

Fixing Solana Congestion Issues Boosts Memecoins

The significant rise in these Solana memecoins is closely related to recent performance improvements of the Solana network. A tweet from SolanaFloor earlier today stated: “BREAKING: Solana’s congestion issues have been completely resolved with block production returning to normal. Transactions confirmed in less than 2 seconds. This announcement marks a pivotal moment for the network which was plagued by congestion problems.

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On April 15, Solana developers deployed crucial updates designed to alleviate these issues, urging validators to adopt version v1.17.31. This version introduces changes to the treatment of validators based on their challenges. Further improvements are expected with the release of v1.18 next month, which will include a new scheduler, albeit disabled by default.

Andrew Kang, founder of Mechanism Capital, REMARK a few days before the patch: “Let’s also not forget that Solana’s congestion issues have significantly weighed down SOL and Solana-based memecoins. The question is not if but when the network will be significantly improved. This is your springboard. Kang’s comments now seem prophetic as the resolution of network issues has indeed served as a springboard for memecoin valuations.

Details on Rally Of Dogwifhat (WIF) and BONK

WIF price surged to a 24-hour high of $3.43 on April 24, supported by an impressive 96% increase in trading volume. This influx was fueled by notable acquisitions from whales like Ansemwhich capitalized on positive market sentiments.

The break above the resistance level at $3.18, after a week of sideways trading between $1.97 and $3.18, was a significant trigger. WIF formed a two-week ascending triangle, a bullish chart pattern that indicated the continuation of the previous uptrend. The breakout was widely discussed in the crypto community, with trader Bluntz Capital confirming the resolution of the trend and sparking additional bullish sentiment.

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BONK recorded a spectacular increase of 35%, with a remarkable 304% increase in trading volume. Price action managed to cross the 0.236 Fibonacci retracement level at $0.000020727 and continued its upward trajectory to the 0.5 Fibonacci level, signaling strong buying interest and bullish momentum .

This rally likely benefited from additional support from the recent registration of BONK by global neobank Revolut, which was announced on April 22. This inclusion in Revolut’s trading platform, which offers over 150 digital currencies, has provided significant exposure and legitimacy, further boosting investor interest and market activity around BONK.

BONK price, 1-day chart | Source: BONKUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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