Open source blockchain platform, native to Solana cryptocurrencySOL approached the $100 mark on Friday morning, extending a powerful rally to its third consecutive week.
The price increase has coincided with a frenzy of coin activity meme and the increase in usage metrics in the sunny platform.
Dog-Themed Token-Powered Meme Coin Rally
A meme coin is a cryptocurrency that gains popularity and value more from online hype, jokes, and viral speculation than from having any real-world utility. The most famous example is Dogecoin (DOGE), which features the popular Shiba Inu โDogeโ internet meme as a mascot and was created in 2013 as a joke mocking the flood of altcoins entering the cryptocurrency market.
The catalyst for the current rally appears to be a viral dog-themed token called BONK, which posted parabolic gains of over 1000% in late November. This caught the attention of retail cryptocurrency traders and inspired a wave of animal-inspired "bonk" meme coins that rushed to replicate BONK's success.
The biggest success has been dogwifhat (WIF), which rewarded early buyers with returns of more than 10,000% in a matter of days.
Last month, thousands of these speculative meme coins were launched on the Solana blockchain, the platform of choice due to its fast and cheap transaction performance. Most projects fail quickly after a short-term pump and dump, but the hype has refocused attention on Solana's capabilities and reignited widespread retail interest in holding SOL.
Chain activity in Solana has exploded as a result. Trading volumes and network fees over the past week surpassed Ethereum for the first time. Impressive for a blockchain that is still less than two years old. The total value locked in Solana's burgeoning decentralized finance ecosystem has also catapulted from $400 million in November to $1.3 billion today.
Solana price soars
SOL's price gains this year are now over 800%, and the last two months alone have seen a huge increase. And that is despite the enormous selling pressure on SOL stemming from the current bankruptcy process of crypto exchange FTX, previously one of the largest holders of the token.
With developers and investors flocking to Solana once again, the thriving blockchain ecosystem and its status as an outlet for speculative mania should quickly propel SOL towards the vaunted $100 mark in no time. The million-dollar question will be whether the network can sustain this dizzying growth beyond the meme coin hysteria.
"Solana is recovering more steadily than most major competitors and showing more interest in it in the community, which promises to keep it performing above the market in the coming months," said Alex Kuptsikevich, senior market analyst. by FxPro. Coindesk on Friday.
He added: โGoogle searches for Solana have skyrocketed 250% in the last two months. โUser interest has coincided with the assetโs explosive growth and rising prices of related meme coins.โ
Featured Image: AI-generated rendering of DALL-E meme coins
