Solana Meme Coins Tumble by 80% Post-December Surge

• Decline in Demand for Meme Coins on Solana Network
• Downward Trend of Dog-themed Tokens
• Lesser-known Cat-themed Tokens Take a Hit
• The Solana Ecosystem Boom and Subsequent Profit-taking
• Reason for the Boom
• Shifting Capital Leads to Profits Taking

Decline in Demand for Meme Coins on Solana Network

The Solana$104 5.03% network has recently witnessed a decline in demand for its meme coins. Notable new tokens have been struggling to create a substantial community, and the value of once popular tokens continues to drop.

Downward Trend of Dog-themed Tokens

The bonk (BONK) token, a dog-themed coin, has seen a significant drop of over 70% since its peak in December after a 1,000% rise over a three-month period. Dogwifhat, another meme token that acquired traction amongst crypto holders due to its signature image of a dog wearing a hat, has also taken a hit, with a drastic drop of nearly 80% following its initial skyrocketing return of over 10,000% for early investors.

Lesser-known Cat-themed Tokens Take a Hit

Popcat (POPCAT) and chipi (CHIPI), two lesser-known cat-themed tokens, have experienced more than a 90% decline since their all-time highs. Despite this downturn, there remains a sense of optimism within their communities for a potential revival.

The Solana Ecosystem Boom and Subsequent Profit-taking

December witnessed a significant boom in the Solana ecosystem, predominantly driven by the bonk tokens' multiweek rally of over 1,000%. This rally led to the tokens being listed on prominent exchanges such as Binance and Coinbase. This in turn sparked activity within the network, with the value of Solana's Saga phone rocketing to over $5,000 and Solana's market capitalization quickly surpassing other larger tokens. Solana became the primary draw for on-chain traders, with last week's trading volumes and network fees surpassing those of Ethereum$2,315 -2.42%.

Reason for the Boom

The boom can be attributed to the blockchain's fast transactions, reasonable fees, and a series of meme coin issuances. These factors breathed life into the network in early December, pushing the SOL token prices up to nearly $120 from $38 at the beginning of November. Concurrently, the value locked on Solana applications experienced growth, increasing to $1.3 billion worth of tokens from the $400 million mark in November, a level not seen since July 2022.

Shifting Capital Leads to Profits Taking

However, profit-taking began towards the end of December as valuations soared. New launches struggled to gain momentum, and there was an apparent movement of capital towards opportunities on other blockchains.

Edited by Jonathan Stoker