Solana’s value rises to $160, highest stage since January 2022 as memecoin mania rises

Dogwifhat and politically-inspired tokens of President Biden and Trump additionally see value spikes

The token behind Solana, a layer-1 blockchain that’s aggressive with the Ethereum blockchain, has been by way of the wringer after it plummeted from a excessive of about $260 in late 2021 to a low round $8 in early 2023. However like each good film with a personality redemption arc, Solana has one too.

The cryptocurrency handed $160 on Wednesday, marking its highest value since January 2022. It’s the fourth largest cryptocurrency (excluding stablecoins) by market cap behind bitcoin, ether and BNB, in that order, and it’s up 44.8% on the month and about 676% from the year-ago date, in keeping with CoinMarketCap knowledge.

The blockchain behind the token is well-known for its NFT market, which is the second largest by all-time gross sales quantity at $5.2 billion, in addition to its decentralized finance (DeFi) ecosystem and extra not too long ago, builders’ skill to churn up memecoins on its chain sooner than I can write this text. So it’s not stunning that the expansion and traction on its blockchain can also be being transpired by way of to its token.

Since mid-December, various Shiba Inu dog-themed tokens on the Solana blockchain like Bonk and dogwifhat have taken off. The 2 tokens, which attempt to capitalize on the recognition of the unique dog-based memecoin, Dogecoin, are up 150% and 600% on the month, respectively. The dogwifhat neighborhood additionally self-funded about $700,000 in lower than 4 days to get the token proven on the exterior floor of the brand new Las Vegas Sphere – and other people paid by way of USDC, the second-largest stablecoin, not {dollars}, to do it.

And don’t fear, cat lovers: kitty-themed tokens like Popcat which are additionally displaying loopy beneficial properties. For context, Popcat’s value elevated 3,205% on the month.

Bonk and Solana’s web3 smartphone Saga gained extra consideration after savvy crypto merchants realized they may redeem 30 million tokens of BONK, value between $500 to $800 in December, on the system. At present costs, the 30 million in free BONK tokens is value nearly a grand.

In current weeks, various politically impressed memecoins on the chain even have gained traction, like jeo boden, doland tremp and the crudely-named elizabath whoren, with market capitalizations of $71.8 million, $47.8 million and $8.8 million, respectively, on the time of publication. (In case you’re questioning if I misspelled these tokens primarily based on U.S. politician’s names, I didn’t.)

Even Coinbase, the most important crypto alternate in America, shared steps on its web site purchase a few of these tokens within the U.S., by way of different avenues off its personal platform. With a view to commerce a few of these cryptocurrencies on Solana, customers want the native chain’s token to pay a nominal payment, fractions of a penny. (Please observe none of that is monetary recommendation, however one of many causes that might level to Solana’s value enhance.)

Memecoins normally have seen an enormous rally because the crypto market continues to thaw from its most up-to-date winter. This, alongside airdrops from tasks’ tokens, have sparked curiosity in Phantom, a crypto pockets closely used throughout the Solana ecosystem, which has seen its energetic consumer base greater than triple previously 12 months to three.2 million month-to-month energetic customers.

Whereas majority of those tokens don’t have any underlying utility – dogwifhat is actually named after a canine carrying a knitted hat – individuals are nonetheless rallying behind them, arguably in hopes of getting wealthy fast or as a result of they resonate with the eccentric, tsunami-like communities these property create.

However what goes up, typically comes down, and the short rise of some memecoins is usually adopted typically excessive busts, generally inside days of launching. Whereas some might retain value assist for months, as we’ve seen with a handful of tokens, it’s essential to think about that not every little thing that shines like glitter is gold.