Solana meme tokens experience a surge despite the decline in the cryptocurrency market.
Solana meme coins are experiencing remarkable growth, in sharp contrast to the heavy losses suffered by many leading cryptocurrencies, according to data from CoinGecko.
The meme coins segment is outperforming other cryptocurrencies, with Dogwifhat (WIF), the largest meme coin on the Solana blockchain, rising by 18% in the past 24 hours. Popcat (POPCAT) has rallied by 61%, Jeo Boden (BODEN) has gained 53%, Slerf (SLERF) has surged by 16%, and Wen (WEN) is up by 28%.
In contrast, the broader cryptocurrency market has shown more muted performance. Although Bitcoin briefly fell below $57,000, it has since recovered slightly and is currently trading around $59,000. Meanwhile, the meme coin sector on Solana has seen a 14.7% increase in capitalization, now valued at $7.4 billion.
Cryptonary, an analytics platform, has observed the current market enthusiasm for meme coins. However, this market segment does come with its risks. A recent investigation by crypto sleuth ZachXBT uncovered 12 projects with Solana-based meme coins that were abandoned, resulting in losses of $26.7 million for investors. For instance, the I Like This Coin (LIKE) project raised approximately $7.8 million from investors but later plummeted in value by more than 50%.
Eddy Lazzarin, the CTO of A16z, also expressed negative views on the meme coin sector. Lazzarin believes that meme coins undermine the long-term vision of cryptocurrencies, which is what keeps many people interested in this space, and he finds them uninteresting from a technical perspective.
In related news, ZachXBT reported that Solana meme coins raised $149 million in just one week.
