Solana (SOL) Surges Outpacing Ethereum Amid Memecoin Mania

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Solana, the “sleeping giant,” soared over 12% and broke through key resistance levels. Starting the week bullishly, SOL surpassed $200, signaling potential for a new all-time high soon. Meanwhile, Solana’s trading volume surpasses Ethereum’s, hitting $3.79B amid the meme-coin frenzy.

Despite the surge, the network struggles with transaction failures and congestion. Despite the negative rumors, the $SOL price rallied, becoming the fourth-largest crypto by market cap. Let’s see what next.

Solana’s vs. Ethereum: What’s Cooking in Meme Coins?

Lookonchain, a prominent blockchain analytics platform, has provided valuable insights into Solana’s recent surge in the cryptocurrency market. Solana’s Total Value Locked (TVL) in decentralized finance (DeFi) has shot up to its highest point in two years, surging by 80% in the last month. This increase shows more money coming into Solana’s DeFi projects, meaning people feel more confident and active in using the network.

The explosion of meme coins and other tokens on the Solana blockchain has fueled this surge in DeFi TVL. These tokens, riding on viral trends and internet memes, have grabbed traders’ and investors’ attention, igniting a frenzy of trading activity and a hunger for assets based on Solana.

The prime example is Book of Meme (BOME), a newly launched meme coin on Solana, whose market capitalization skyrocketed to $1.45 billion within a remarkably short period. This shows the potential for quick growth and speculation within the Solana ecosystem.

On a rare scenario, Solana’s trading volume has occasionally outpaced Ethereum’s, indicating a shift in trading towards the Solana network. Notably, this surge is driven by rising interest in Solana-based assets and tokens, alongside the network’s capability to process high transaction volumes swiftly and affordably.

Impact of Whales

On top of that, whales or huge investors affect Solana’s price movements. Whales, who hold a lot of SOL tokens, have been selling their holdings to profit from the recent increase, which might trigger short-term price changes. Over two days, the whale “BU6N2Z” deposited 200K $SOL ($39.85M) into Binance. They still have 1.62M $SOL ($323M), 387K in their wallet, and 1.23M staked.

Overall, investors can gain valuable information by leveraging insights from platforms like Lookonchain to effectively make informed decisions and navigate the volatile cryptocurrency market.