Significant Decline: Bonk Coin Plummets 70% as Solana's Memecoin Craze Wanes

The Demand for Solana-based Memecoins Decreases

The demand for Solana-based memecoins has decreased in the past week as they retrace a significant portion of December 2023’s gains. The ten top Solana-based memecoins by market capitalization, such as Bonk, dogwifhat (WIF), and Popcat (POPCAT), have declined by 25%, 55%, and 38%, respectively, in the past seven days. Bonk, in particular, has fallen by over 70% from its all-time high recorded on Dec. 15, 2023.

Memecoins Drive Solana Trading Volume

Memecoin trading has been a significant driving factor in transaction volume on Solana for over one month. Among the top five tokens by 30-day trading volume on Solana, two pairs involve memecoins, while the remaining volume is associated with stablecoins.

Decline in Memecoin Prices Coincides with Decrease in Active Addresses

However, the decrease in Solana-based memecoin prices has coincided with a decline in daily active addresses on the network. The number of unique addresses involved in daily transactions on the Solana blockchain has fallen steadily since mid-December. The daily active address count has declined from a multi-month high of 981,000 on Dec. 21 to a reading of 614,000 in early January.

Solana Sees Decline While Bitcoin and Ether Gain

Solana closed 2023 as the best-performing major altcoin but has experienced a decline of over 2% in the last 24 hours. In comparison, bitcoin and ether have gained 1.2% and 0.2%, respectively. The current price of Solana is $93.20 at 7:00 a.m. ET.

Hot Take: Solana-based Memecoins Face Decreased Demand

The demand for Solana-based memecoins has significantly decreased in recent days, leading to a decline in their market prices. This decrease in demand has also resulted in a decline in daily active addresses on the Solana network. While memecoins have been driving transaction volume on Solana, their declining popularity raises questions about the long-term sustainability of this trend. As Solana faces a slight decline, other cryptocurrencies like bitcoin and ether continue to see gains. It remains to be seen how the market will respond and whether Solana-based memecoins can regain their previous levels of popularity.