The resurgence of memecoin interest within the Solana [SOL] ecosystem has the potential to elevate the value of this alternative digital currency in the long run.
Ryan Watkins, a co-founder of cryptocurrency venture capital firm Syncracy Capital and a former researcher at Messari, suggested that Solana’s stronghold in the memecoin space could contribute to its upward trajectory, referencing the recent hype surrounding the AI-generated GOAT token. In his words,
“Whether memecoins represent new types of belief systems or artificial intelligence entities spawning cults on the blockchain is immaterial to me; what is clear is that all paths lead back to $SOL.”
The Frenzy of Memecoins on Solana
To support his assertion, the executive highlighted Solana as the epicenter for various speculative endeavors during this market cycle, as evidenced by the activity on Raydium, a decentralized exchange (DEX) built on Solana.
Notably, the DEX recently attained a record-high market dominance of 72% during the current surge in memecoin popularity.
“It’s important to recognize that Raydium, the primary DEX facilitating memecoin trading on Solana, has reached unprecedented levels of market dominance amidst the latest craze,” he added.
Fascinatingly, data from Kaito showed that GOAT emerged as the most prominent memecoin in terms of mindshare, solidifying its position as a focal point during the recent surge.
During this period, it commanded nearly 12% mindshare, with Dogecoin [DOGE] being its closest competitor.
Another market analyst, Gumshoe, echoed Watkins’ sentiments and pointed out SOL’s exceptional performance over the preceding weekend. He remarked,
“When speculative activities intensify on Solana, the market is poised to factor in a notable shift in dynamics.”
Data from Santiment lent further credence to these insights, indicating a predominantly optimistic sentiment surrounding SOL in the past week.
While the exact reasons for this positive sentiment remain unclear, whether it stemmed from the surge in Bitcoin [BTC] prices or the resurgence of memecoin interest is uncertain.
At the moment, SOL is trading around $160, a level that signifies a crucial mid-range position and a bearish order block (OB). Simply put, this juncture marks a significant supply zone that, when breached, could propel SOL towards $180 in the near term.
However, a price rejection at this level could potentially lead the altcoin down to its 50-day Exponential Moving Average (EMA) of $147 or back to previous range lows.