Bitcoin Price Drop Doesn’t Affect BONK, POPCAT, and Solana Memecoins

In the month of April, the crypto market as a whole experienced corrections, with almost every sector seeing a decline. Memecoins in the Solana ecosystem have taken a different path. Recent data from CoinGecko shows that the total market capitalization of memecoins on Solana has risen by 4.2% in the last 24 hours, reaching $8.261 billion. The memecoin called Bonk (BONK) recorded the highest gain, increasing by 15.2% in the past day and 8.7% in the last hour. Popcat (POPCAT) also saw double-digit gains, with a 10.7% increase in the past 24 hours and a staggering 214% rise over the past week. The leading memecoin on Solana, Dogwifhat (WIF), experienced a 1.4% price increase in the day and a 5% increase in an hour, bringing its market cap to $3.185 billion. Notably, WIF still represents almost half of Solana’s memecoin market share.

Many experts in the crypto industry believe that it is common for memecoins to surge in value during their initial launch and then experience a sharp decline when the price of Bitcoin crashes. Mert Mumtaz, the co-founder and CEO of Helius Labs, emphasized the significance of memecoins for the crypto industry and the networks that support them. According to Mumtaz, these coins are beneficial for “getting crypto into the hands of more people” and for testing the network’s capacity. He stated that memecoins have had a positive long-term impact on Solana comparable to the influence that NFTs had in 2021. CoinGecko’s recent report indicates that memecoins have been the most profitable sector in the crypto market this year.

The surge in Solana memecoins amid a market downturn demonstrates the increasing importance of Solana as a layer 1 ecosystem. This indicates that investors’ interest in the blockchain is not simply speculative, but is rooted in genuine user engagement and significant development activity. The blockchain has shown potential through its high transaction volumes and the growth of decentralized finance (DeFi) applications. Data from DefiLlama reveals that the volume on Solana reached $1.5 billion on April 25, compared to $840 million on April 7. The blockchain’s all-time high volume was recorded on March 15 at $3.8 billion. The number of active addresses on the Solana network continues to rise, with over 842,000 active addresses recorded recently. This is a higher figure than in previous years, indicating growing network activity and user participation.

The price of Solana (SOL) has experienced a slight retracement following its rally that started on April 17. According to data from Markets Pro and Tradingview, SOL’s price has dropped by 1.15% in the past 24 hours, reaching $147. Trading volume across major centralized exchanges has decreased by 56% from its six-week high of $8.9 billion on April 13 to $3.9 billion.

While the overall crypto market has been correcting, memecoins on the Solana network have shown resilience and positive growth. Their increase in market capitalization and gains reflects the broader trend of investors becoming more willing to take risks as the market prepares for a sustained recovery after the recent Bitcoin halving event. Solana’s increasing popularity can be attributed to its active user base, high transaction volumes, and growing number of DeFi applications. The price of Solana itself has experienced a slight decline in recent days.