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SOL Hits $150: Pantera Capital Bid & Memecoin Surge Boost

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SOL Hits $150: Pantera Capital Bid & Memecoin Surge Boost

The native token of Solana, a blockchain platform, saw a significant increase of 19.5% between March 5 and March 7, reaching $150. This is the first time it has reached this level since January 2022. The surge gained momentum after it was reported that Pantera Capital’s asset manager plans to purchase $250 million worth of SOL tokens from the bankrupt FTX estate. Traders are now questioning whether SOL can maintain its gains of 47% over the past twelve days, and whether it has the potential to surpass $200.

It is important to note that even if Pantera Capital’s proposal is accepted, it represents only a small portion of the $5.9 billion worth of SOL tokens held by the FTX estate, which is about 10% of the token supply. Therefore, the bullish momentum is likely driven by other factors, such as the frenzy surrounding Solana SPL memecoins. These memecoins, inspired by celebrities and poorly drawn characters, have dominated in terms of both volume and performance.

The popularity of these memecoins encourages investors to speculate on newly launched tokens within the Solana network and prompts developers to provide liquidity for their projects. This hype positively influences the demand for SOL tokens and the utilization of its decentralized exchanges (DEX) ecosystem. It also attracts attention from newcomers who may be less concerned about decentralization and fees on other blockchains.

In addition to the memecoins, other SPL tokens with functional use or associated applications, such as Jupiter (JUP) and Raydium (RAY), also saw significant increases in value. This further contributes to the demand for SOL tokens. There is also anticipation surrounding upcoming airdrops, including Wormhole, Kamino, Parcl, and MarginFi, which creates ongoing demand for SOL tokens.

While some may argue that the bullish momentum of SOL could fade after the hype around the memecoins and airdrops, or due to potential restrictions from the FTX bankruptcy estate, the current surge in volumes suggests otherwise. The performance of SOL is not solely reliant on the performance of specific SPL tokens, as long as new protocols and use cases continue to emerge.

The Solana network’s ecosystem plays a crucial role in the demand for SOL tokens. The network’s smart contract deposits, measured by the total value locked (TVL), reached a 16-month high on March 6, indicating a 33% increase from the previous month. This growth in deposits for Solana’s decentralized applications (DApps) is driven by increases in various projects such as Jito, MarginFi, Kamino, BlazeStake, Jupiter, and Drift.

Comparatively, Solana DApps volume has surged by 311% in the past 30 days, while the Ethereum network has experienced a 7% decline. In absolute terms, there is still a significant gap compared to competitors like Arbitrum and BNB Chain.

The future of SOL’s price and performance will depend on the continued increase in demand for the Solana network. It operates within a competitive industry, so it will face challenges from other blockchain platforms.

5 thoughts on “SOL Hits $150: Pantera Capital Bid & Memecoin Surge Boost

  1. It’s just a matter of time before some regulatory crackdown comes along and brings the whole cryptocurrency market crashing down.

  2. The increase in total value locked for Solana’s DApps is impressive. It’s a clear indication of the network’s growing popularity.

  3. The surge in SOL’s price is a clear reflection of the growing confidence in the Solana network. Big things are happening!

  4. The consistent increase in the demand for SOL tokens is a great sign for its future. The sky’s the limit!

  5. The ongoing demand for SOL tokens due to airdrops and upcoming projects is definitely fueling its growth. Exciting times ahead!

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