Meme coins on the Solana blockchain have seen rapid declines after surging in December, with once high-flying tokens now trading at fractions of their peak values.
Bonk Tokens Lose Over 70%
Bonk tokens on Solana rallied over 1000% in December, with Bonk1 peaking at $0.00004532. However, they have since dropped by over 70% and are now trading at $0.00001069.
SOL Briefly Surpassed Major Coins
Solana’s native token SOL had briefly surpassed the market capitalization of major cryptocurrencies like BNB in January as the blockchain gained traction. However, SOL has given up much of those gains.
Dogwifhat Falls Almost 80%
Another Solana memecoin, Dogwifhat, has fallen by almost 80% from its mid-December high and is currently trading at $0.09279.
Factors Driving the Rally and Decline
Solana’s popularity was partly due to its provision of fast and inexpensive transactions and the launch of new meme coins. The blockchain saw large increases in trading volumes and network fees, even surpassing Ethereum at one point. However, late December saw profit-taking, leading to a decrease in meme coin values.
Total value locked within Solana applications rose from $400 million in November to $1.3 billion, further indicating the hype around the blockchain. But capital now appears to be moving away from Solana tokens.