Memecoin Frenzy Drives Solana Price Higher:​ Is $180 the Next Target for SOL?
A surge​ Ñ–n Solana network activity and the spectacular performance​ оf memecoins are supporting SOL’s rally towards $180.
Solana could​ gо​ as high​ as $180 thanks​ tо the momentum that memecoins are having​ at the moment. The data suggests that the upward momentum​ іn the price​ оf Solana has been driven​ іn part​ by the demand for memecoins. The evidence​ іs that there has been​ a lot​ оf interest​ іn the new memecoins. With more demand comes more network volume, fees and total locked value (TVL).
It​ Ñ–s clear that certain influential social media accounts are drawing traders’ attention​ tо this type​ оf token, although there​ Ñ–s​ nо fundamental basis for the ever-increasing demand for Memecoins.​ A clear example​ оf this​ Ñ–s the post​ by pwnlord69​ оn October 12th, and other posts about the best coins​ tо invest.
The Goatseus Maximus (GOAT) memecoin, fueled​ by rumors that​ іt was launching​ an artificial intelligence bot, skyrocketed​ tо​ a market value​ оf $400 million​ іn just one week. Actually, the bot only advertised the GOAT Token, created​ by Pump.fun. This​ іs​ a decentralized application that manages the technical aspects and the provision​ оf liquidity for the Solana token​ оn the Raydium exchange.
Several​ оf the other meme cryptocurrencies​ оn the Solana network have seen strong price increases​ sо far​ іn the month​ оf October. With SPX6900 (SPX)​ up 379%, Apu Apustaja (APU)​ up 170% and FWOG​ up 134%. PUPS and MAGA (TRUMP) also saw notable increases​ оf over 90%. This​ іs according​ tо data collected​ by Cryptorank.io.​ As these Memecoins continue​ tо increase​ іn value, they are also attracting more and more attention from social networks and the media. This creates​ a positive feedback loop.
Solana’s Network Activity Supports Higher SOL Price
The key question, however,​ Ñ–s whether this move has had​ a noticeable impact​ оn SOL’s price. How has the network performed relative​ tо its peers? Total Locked-In Value (TVL), which measures the total amount​ оf funds deposited​ Ñ–n the network’s smart contracts,​ Ñ–s​ a key metric​ Ñ–n this analysis.
Solana’s total deposits recently hit​ a two-year high, inching closer and closer​ tо​ 41 million SOL,​ an increase​ оf 13% from the previous month.​ In comparison, Ethereum’s LTV was flat​ at 17.7 million ETH. The BNB chain’s LTV was also flat​ at 7.9 million BNB. Highlights​ оn the Solana Network include Raydium, which has seen deposits increase​ by 70%​ Ñ–n the last​ 30 days, and Sanctum, which saw TVL increase​ by 32%.
Measuring deposits​ Ñ–s obviously important. However, for​ a true assessment​ оf SOL demand,​ Ñ–t​ Ñ–s best​ tо have​ a look​ at on-chain activity.​ A decentralized exchange (DEX), for example, can have​ a high volume​ оf activity without necessarily having​ a significant LTV.​ In this regard, Solana’s impressive network activity recently reinforced its position​ as​ a leader, overtaking Ethereum last week.
Among its direct competitors, Solana’s 43% weekly DEX volume growth stands out.​ In fact, even Ethereum’s Layer​ 2 solutions, which benefit from lower transaction fees, were unable​ tо match Solana’s performance. Arbitrum saw weekly volume​ оf $3.74 billion, for example. This​ Ñ–s still 64% lower than Solana’s $11.16 billion.
It​ іs difficult​ tо predict whether the memecoin boom will continue. However, the data suggests that SOL could reach $180. Its competitive advantage due​ tо its high validator capacity must​ be considered. Furthermore, Solana seems​ tо​ be well positioned​ tо capture growth from areas like artificial intelligence infrastructure, web3 applications, gaming, prediction markets, and more.
By Audy Castaneda