Decoding the Recent Decline in Solana Memecoins
As a crypto enthusiast, you must be aware that the top ten Solana-based memecoins have recently experienced a downturn in their market capitalization. Here’s a breakdown of the recent price movements:
- Dogwifhat: 5% decrease
- Bonk: 3.5% decrease
- Book of Meme: 10% decrease
- Jeo Boden: 1.3% decrease
- Cat in a Dogs World: 18.9% decrease
- Popcat: 18.0% decrease
- Myro: 5.0% decrease
- Wen: 14.4% decrease
- Slerf: 7.4% decrease
- Catcoin: 7.7% decrease
Current State of the Solana Memecoin Market
The overall market capitalization of Solana memecoins now sits at $8.3 billion, constituting 12% of the entire memecoin market’s value, which is approximately $64 billion.
The daily moving average of non-vote transactions on the Solana network has dropped to around 24 million, marking a multi-week low. This decline coincides with the network facing congestion issues due to a surge in spam transactions.
The heightened interest in on-chain memecoin trading on Solana has driven on-chain volumes to a new all-time high in U.S. dollar terms, primarily observed on Fridays.
Solana Liquidations Surge
In the preceding 24 hours, Sol experienced a decline of over 3%, with its price hovering around $175. Notably, Sol long positions bore a significant impact from the recent market volatility. Data from Coinglass indicates that there were liquidations totaling over $4.33 million for Sol long positions within the past 24 hours, out of a total liquidation value of $4.81 million across various cryptocurrencies.
Hot Take: Making Sense of the Recent Solana Memecoin Downturn
Faced with the recent decline in Solana memecoins, it’s imperative for crypto investors to analyze the underlying reasons behind this downturn. Factors such as network congestion, transaction volumes, and market sentiment play a crucial role in shaping the performance of memecoins. Stay informed, stay cautious, and remember that the crypto market is unpredictable yet full of potential opportunities.
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