Solana’s Memecoin Surge: Will $180 SOL Be the Next Peak?

Solana’s Memecoin-Driven Price Rally

Solana’s native token, SOL (SOL), saw a 12.1% increase from Oct. 11 to Oct. 18, partly fueled by the rising demand for memecoins. This surge in demand has led to increased network volumes, fees, and total value locked (TVL).

Debating the Sustainability of the Memecoin Craze

Traders are now contemplating the sustainability of the memecoin trend and how SOL’s price can continue benefiting from the surge in network activity.

Influential Social Media and Memecoin Growth

While the surge in memecoin demand lacks a fundamental basis, it’s evident that influential social media accounts are steering traders’ focus towards these tokens. For instance, a post on Oct. 12 by pwnlord69 highlighted Goatseus Maximus (GOAT), which swiftly reached a market value of $400 million within a week, driven by rumors of an AI bot launch. Despite this, the bot merely promoted the GOAT token, launched using Pump.fun, a decentralized application managing technical aspects and liquidity provision for Solana tokens on Raydium.

Other memecoins on the Solana network also experienced significant price hikes in October. SPX6900 (SPX) surged by 379%, Apu Apustaja (APU) rose by 170%, and FWOG gained 134%. Notable gains above 90% were observed for PUPS and MAGA (TRUMP) as per Cryptorank.io data. These appreciations attract more attention from social networks and media, creating a positive feedback loop.

Solana Network Activity and SOL’s Price Impact

The crucial question remains whether this activity significantly influences SOL’s price and how Solana’s network performance compares to competitors. TVL, a key metric, measures total funds in the network’s smart contracts. Solana recently hit a two-year high of nearly 41 million SOL, up 13% month-over-month, while Ethereum and BNB Chain saw stagnant TVL figures.

• Solana’s network highlights include Raydium, with a 70% increase in deposits over the past 30 days, and Sanctum, which gained 32% in TVL.

To gauge demand for SOL accurately, one must analyze onchain activity. Solana’s network activity recently surpassed Ethereum, recording a 43% weekly growth in DEX volumes. Even Ethereum’s layer-2 solutions couldn’t match Solana’s performance, with Arbitrum’s weekly volume 64% below Solana’s.

Future Outlook for SOL and Solana’s Competitive Edge

While the sustainability of the memecoin surge remains uncertain, data indicates that SOL reaching $180 is feasible, supported by Solana’s high validator capacity. Solana is well-positioned to capitalize on growth in artificial intelligence infrastructure, Web3 applications, gaming, prediction markets, and other sectors.