The hype around Solana meme coins seems to be fading, with investors facing a reality check. Solana’s influence, which previously propelled top meme coins like BONK to fame, is now under scrutiny. The excitement around meme coins on the Solana network has cooled, with Bonk (BONK) experiencing a sharp drop of over 70% from its December highs. This downturn is attributed to Solana’s wider price correction, which has led to a decrease in demand for SOL tokens and subsequent repercussions for tokens built on the Solana blockchain.
Bonk, currently the third-largest meme coin by market capitalization, is struggling with a lack of community support and dwindling optimism among analysts. The coin, which made early investors millionaires in a short period, is now underperforming, causing investors to question their decisions. This downturn is particularly disheartening for those who capitalized on Bonk’s unprecedented success at its highest price point in previous months. As per the latest data, Bonk is trading at $0.00001066, down by 1.5% in the past 24 hours. Analysts are concerned that the coin might breach its current support level and potentially dip further. However, some analysts predict a potential resurgence, with 2024 projections suggesting a rise to as high as $0.00007524.
Bonk is not the only victim of the recent market downturn on Solana. Dogwifhat, known for featuring a dog wearing a hat, has seen an 80% decline after initially generating significant hype by providing early holders with over a 10,000% return on their capital. Additionally, lesser-known tokens like popcat (POPCAT) and chipi (CHIPI), both cat-themed, have experienced over 90% declines from their lifetime peaks. Despite the substantial losses, their communities are still holding out hope for a potential revival.
Solana’s ecosystem experienced a surge in December, marked by meme coin Bonk’s impressive run and subsequent listings on major exchanges such as Binance and Coinbase. Binance, on December 15, announced the addition of Bonk to its Binance Convert service, providing users with an easy tool to buy or sell cryptoassets. However, the hype began to wane as the month progressed, leading to profit-taking and a shift of capital to opportunities on other blockchains. The rapid surge in valuations, coupled with newer launches struggling to gain momentum, contributed to the decline in Solana-based meme coins.
Solana emerged as a strong contender in traders’ portfolio, surpassing Ethereum in trading volumes and network fees on a seven-day rolling basis. The blockchain gained attention for its speedy transactions, low fees, and a flurry of meme coin issuances. SOL token prices surged from $38 at the start of November to nearly $120 in early December. Currently, SOL is trading at $94.08, reflecting a 0.75% decrease in the past 24 hours. The Ethereum contender’s market cap stands at $40.6 billion, with trading volume that has soared by 73.2% to 3.6 billion.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Coinbase, Crypto News Flash, Binance |
| Currencies | Solana, Popcat, dogwifhat, Chipi, Bonk, Ethereum |
| Securities | None |
