Developments in memecoin projects, which have played a significant role in the momentum of Solana’s price, continue to attract attention. Accordingly, the demand for Solana-based memecoins faced a serious decrease last week, following the retracement of a significant portion of the gains made in December. This situation could also be due to the recent rug-pull scams.
What’s the Current State of Memecoin Projects?
Serious declines have occurred in the top ten Solana-based memecoin projects by market value. Accordingly, in the last seven days, Bonk lost 25%, dogwifhat (WIF) 55%, and Popcat (POPCAT) 38% of their value. Particularly, the rug-pull scams on the Solana network have been causing fear and concern among users.
According to data from Tradingview, Bonk has experienced a drop of over 70% from its all-time high recorded on December 15, 2023. The popular memecoin managed to gain over 11,000% last year and was listed on leading cryptocurrency exchanges such as Binance and Coinbase.
Interest in the Solana Ecosystem Is Waning
According to data from blockchain analytics firm Dune Analytics, memecoin trade volume has been a significant driving factor in the transaction volume within the Solana ecosystem for over a month. Among the top five tokens by 30-day transaction volume on Solana, two are memecoin projects, while the remaining volume is associated with stablecoin projects.
Moreover, the decline in the prices of Solana-based memecoins coincided with a decrease in the number of daily active addresses on the network. According to The Block’s Data Dashboard, the number of unique addresses participating in daily transactions on the Solana blockchain network has been steadily falling since mid-December. The number of daily active addresses dropped from a several-month high of 981,000 on December 21 to 614,000 at the beginning of January.
Solana closed the year 2023 as one of the best-performing major altcoin projects. However, in the last 24 hours, the token saw a rise of over %% while Bitcoin and Ethereum gained 2.31% and 1.87% respectively. According to Tradingview data, at the time of writing, Solana was trading at $94.26.
