Memecoin Mania Allows Solana to Break the $200 Mark
Activity on the Solana network reached new records over the weekend amid a frenzy of demand for memecoins, leaving the network struggling to cope with the high load.
Last weekend, analytics platform DefiLlama recorded that Solana's total trading volume overtook Ethereum, reaching $3.52 billion and exceeding the daily volume on the Ethereum network by more than $1.1 billion. This resulted in the Solana network barely being able to handle the load, which X users decided to share.
BREAKING : $Sol has flipped $Eth and ALL its L2s on 24hr volume
— Sol Beach Bum | X🔥💃🏻 (@SolBeachBum) March 17, 2024
Sol : $3.8bn
Eth (excl Polygon) : $3.55bn
Incl Polygon : $3.7bn
🤯🤯🤯 pic.twitter.com/dZvr3kpYsl
One user noticed that about 50% of transactions were not validated for about 20 minutes. In addition, many users experienced that they were unable to send or receive funds in the Solana-based wallet, Phantom.
🚨#Solana is currently congested with an Average Ping Time of 20-40s, 30-50% Ping loss, up to 50-80% failed transactions. $SOL
— Dagnum P.I. (@Dagnum_PI) March 17, 2024
Solana's TPS isn't 50k due to vote transactions; it's just marketing. In reality, under full network conditions with 30-50s wait times, Solana maxes out… pic.twitter.com/NJJfZGDBgo
Meanwhile, Solana's total blockchain value (TVL) is also showing an upward trend, reaching a high of $4.034 billion. This figure is often used to gauge the health of the cryptocurrency ecosystem. The growth in TVL has taken Solana to its highest level in the last two years. Volumes on decentralized exchanges powered by Solana are seeing record growth.
All this led to the fact that the price of Solana token reached new records, breaking the threshold of 200 dollars. Over the past 24 hours, the token has risen by 10%. The weekly growth of Solana amounted to 37%.
Source and Copyright © TradingView
A new multi-month high was formed near the $209 mark. The nearest resistance is near the $205 level. The next major resistance is near the $212 level. Further upside could send the token to the $220 and $232 levels. On the negative side, if SOL fails to rise above the $205 resistance, a downward correction to the $195 support level could begin.
It has been a busy week for Solana, and all due to the outbreak of popularity of another memecoin. Book of Meme (BOME) has seen a 1680% growth over the last 7 days. The token went from zero to a market capitalization of $1.45 billion in just 56 hours after BOME was launched and listed on Binance. Then, the Kucoin exchange also announced support for the new memecoin on the spot platform. In just three days, investors poured more than $100 million into Solana-based memecoins through pre-sales.
The excitement over the new memecoin led to one investor being able to make $30 million on the rise in the price of BOME.
sundayfunday.sol turned $72K into $30.2M in just 3 days on $BOME!😱
— Lookonchain (@lookonchain) March 17, 2024
sundayfunday.sol is the largest $BOME pre-sale participant, spending 421 $SOL($72K) to participate in the pre-sale of $BOME and received 1.43B $BOME($30.6M currently).
He sold 190M $BOME for 19,646 $SOL($3.66M)… pic.twitter.com/4m3spvkI72
The rise in the value of Solana and its memecoins has been accompanied by concerns about network outages, and the current congestion is further complicating the blockchain situation. Solana is positioned as a fast and cost-effective blockchain. The mismatch between claimed and actual transaction processing capabilities, as well as other previously observed issues, pose significant challenges for the platform.
