Solana’s token, SOL, experienced an impressive 8% surge in the second week of September, reaching $135 in current trading. This sudden spike in value can be attributed to the increasing positions of major holders in various meme tokens, thanks to the robust memecoin community supporting Solana.
Three prominent memecoins have garnered substantial interest from significant investors, hinting at a potential uptrend in SOL’s price.
Solana’s Dominance in Decentralized Exchange Volumes
Solana recently achieved a remarkable milestone by surpassing its competitors and emerging as the top blockchain platform in decentralized exchange trading volumes.
Earlier this year, SOL surpassed BNB and Base, securing the leading position with an impressive 378% difference, boasting a trading volume of $3.2 million compared to Base’s $670K. Notably, Solana stands out as the sole blockchain platform with a DEX trader count exceeding one million.
The chart data illustrates the prevalence of memes and low-cap tokens in trading volumes, peaking at $2 billion in mid-March. This surge correlated with a bullish market trend that propelled SOL’s value above $200.
Despite a subsequent drop of approximately 94% in buying volume to $110 million, meme tokens’ dominance has remained unshaken, providing Solana with a buffer against Bitcoin’s price fluctuations, appealing to both large and short-term traders.
Furthermore, a new trend is emerging where respected analysts are observing how memecoins on Solana are fostering a decentralized distribution among top holders, ultimately benefiting SOL’s ecosystem.
Diminished Monopoly to Alleviate Risks
Even amidst last week’s market downturn, robust memecoins on Solana are steadily gaining popularity among committed investors, as indicated in the accompanying chart.
With GIGA leading in the number of holders at 10.8 million, closely followed by POPCAT with 10.4 million holders, the variance in top holder counts is negligible, standing at a mere 3% difference.
Besides, an equal dispersal of substantial holdings aids in minimizing the risks associated with centralization, thereby averting undue influence on token prices.
Moreover, a decentralized distribution could attract a broader spectrum of participants, potentially boosting the value of SOL.
The impact of memecoins on SOL’s performance is significant. Some traders view them as an affordable alternative, while others view them as long-term investments, with BONK leading in weekly activity followed by WIF.
By curbing monopolies and promoting fairer distribution, SOL remains resilient to market downturns, especially those induced by Bitcoin’s price fluctuations, owing to the unwavering commitment of top holders.