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December Frenzy Fallout: Solana Meme Coins Experience an 80% Price Plunge

Jan 9, 2024 at 07:22 am

In December, the Solana ecosystem witnessed a remarkable surge in activity, marked by the exponential rise of bonk tokens, which soared by over 1,000%. These tokens secured coveted listings on major exchanges such as Binance and Coinbase. However, the fervent demand for meme coins within the Solana network has notably dwindled in the past week. The latest tokens struggle to establish substantial communities, and the prices of recent favorites are experiencing a sharp decline.

One standout example is the dog-themed token bonk (BONK), which underwent an impressive 1,000% rally over a three-month period. Despite this surge, it has plummeted by over 70% from its December peak when it gained listing on influential exchanges. Another noteworthy case is Dogwifhat, recognized for featuring a dog wearing a hat. Despite generating excitement for delivering early holders a staggering return of over 10,000% on their capital, it has seen a substantial drop of nearly 80%.

Even lesser-known tokens like popcat (POPCAT) and chipi (CHIPI), both featuring cat themes, have not been spared, experiencing declines exceeding 90% from their lifetime peaks. Despite these setbacks, their communities remain hopeful for a potential revival.

The surge in the Solana ecosystem extended beyond meme coins. The Saga phone, a product of Solana, witnessed a surge in prices to over $5,000, despite struggling to sell out just a few months earlier in October. The SOL token's market capitalization rapidly outpaced that of other major tokens.

Solana emerged as a magnet for on-chain traders, surpassing Ethereum in both trading volumes and network fees on a seven-day rolling basis. The blockchain gained acclaim for its swift transactions, low fees, and a plethora of meme coin offerings, contributing to the surge in SOL token prices from $38 at the start of November to nearly $120.

However, as valuations became increasingly unpredictable in the latter part of December, profit-taking became evident. New token launches encountered challenges in gaining momentum, and there was a noticeable shift of capital towards opportunities on other blockchains. This trend signals a cooling off of the initial enthusiasm that characterized the Solana network during its boom.

Read More: Solana's SOL Retreats Below $100, Trails Behind BNB in Latest Crypto Rankings

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