Solana Surpasses XRP
If you’ve been keeping tabs on the cryptocurrency market, you might have noticed that Solana has surpassed XRP to become the fifth-largest cryptocurrency. This surge has been fueled by a Bonk-inspired meme coin mania.
Bonk Mania
Bonk (BONK), a Solana-based, dog-themed meme coin, has exploded by more than 1,000% at some points in recent weeks and now has a market cap of $1.2 billion. It’s currently up 378% in the past month, and it has significantly contributed to Solana’s market cap soar to $38.4 billion this year after a 650% surge in 12 months. On the other hand, XRP’s market cap now languishes at $33.3 billion after its price jumped 80% in the past year.
The Frenzy Around Bonk
The frenzy around Bonk means traders frequently buy Solana as an underlying asset before converting into Bonk or other meme coins on the network. When they sell the meme coin, they trigger more buying pressure for SOL. Despite the FTX bankruptcy estate intensifying selling pressure as it unloads the token from its holdings, Solana’s recent gains come.
FTX held about 59 million SOL tokens at the end of August and has been gradually offloading them to help repay creditors.
Solana’s Renewed Enthusiasm
Aside from the mania surrounding Bonk and meme coins, SOL’s rally also correlates with renewed enthusiasm around Solana, which its adds “has remained resilient despite immense headwinds triggered by FTX’s collapse.”
The total value locked (TVL) on the SOL blockchain has surpassed $1.22 billion, according to DeFiLlama, its highest level since November 2022. And Solana-based decentralized exchanges are posting higher trading volumes. With Orca seeing a 46% increase and Raydium a 37% seven-day increase in their trading volumes.
Hot Take
Despite BONK’s gains possibly not lasting forever, the token’s ascent highlights SOL’s almost miraculous recovery. It is a clear indication of the SOL network’s potential to continue to surge in the future.
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