Dogwifat and other tokens influenced by the political influence of Presidents Biden and Trump are also soaring in price.
Jacqueline Melinek 7 hours
The token behind Solana, a Layer 1 blockchain that competes with the Ethereum blockchain, has been going through the wringer after plummeting from a high of about $260 to a low of about $8 in early 2023. But like any good movie with a redemption arc for its characters, Solana also has one.
The cryptocurrency soared above $160 on Wednesday, its highest level since January 2022. In terms of market capitalization (excluding stablecoins), it is the fourth largest, in order of Bitcoin, Ether, and BNB, and has increased by 44.8%, or about 676%, from the previous month. From the previous year's date, according to data from CoinMarketCap.
The blockchain behind the token is best known for its NFT marketplace, the second-largest NFT marketplace in history at $5.2 billion, its decentralized finance (DeFi) ecosystem, and, more recently, its ability for developers to scrape together meme coins. I am. That chain is faster than I can write this article. So it's no surprise that blockchain's growth and traction is spilling over into tokens as well.
Since mid-December, a number of Shiba Inu-themed tokens have appeared on the Solana blockchain, including Bonk and dogwifhat. Two tokens seeking to capitalize on the popularity of Dogecoin, the original dog-based meme coin, rose 150% and 600% in the month, respectively. The Dogwifat community also self-funded approximately $700,000 within four days to display tokens on the exterior of the new Las Vegas Her Sphere. And people paid for it not in dollars but through his second largest stablecoin, his USDC.
Don't worry, cat lovers. Kitten-themed tokens like Popcat have also seen an incredible rise. For context, Popcat's price rose 3,205% in the same month.
Bonk and Solana's Web3 smartphone “Saga” gained more attention in December after a savvy crypto trader realized that the device could be used to redeem 30 million BONK tokens worth between $500 and $800. We collected. At current prices, 30 million free BONK tokens are worth almost $10,000.
A number of politically inspired meme coins on-chain have also gained attention in recent weeks, including Joe Borden, Dorland Trempf, and the vulgarly named Elizabeth Whalen, each with a market capitalization of 7,180 yen at the time. million, $47.8 million, and $8.8 million. of publication. (If you're wondering if I misspelled these tokens based on the names of US politicians, you're not wrong.)
Even Coinbase, America's largest cryptocurrency exchange, shares on its website how to purchase some of these tokens in the US through other means on its platform. To trade some of these cryptocurrencies on Solana, users must pay native his-chain tokens at a nominal fee of fractions of a penny. (Please note that this is not financial advice, but is one possible reason for Solana's price increase.)
As the crypto market continues to thaw from the recent winter, memecoins have generally seen significant gains. This, along with airdrops from the project's tokens, has sparked interest in Phantom, a heavily used cryptocurrency wallet across the Solana ecosystem, whose active user base has more than tripled in the past year. The number of monthly active users has increased to 3.2 million.
Although the majority of these tokens have no fundamental utility, Dogwife Hats – literally named after a dog wearing a knitted hat – are people using these assets, perhaps in hopes of getting rich quick, or People still rally behind the token because it resonates with the quirky community like a tsunami. create.
But what goes up often comes down, and the rapid rise of some meme coins is often followed by extreme crashes, sometimes within days of launch. While some hold price support for months, as we have seen with some tokens, it is important to consider that not all that glitters is gold.