The Solana ecosystem seems to be experiencing a particularly active period lately. There is a noticeable increase in the general excitement and interest level in the market. Several factors appear to be playing a role in this surge. Let’s take a look at how the meme coin craze is making a comeback by examining these factors.
What Factors Are Fueling Solana-Based Meme Coins?
Firstly, Bitcoin‘s breakthrough above $70,000 to reach an all-time high has generally led to a rise in altcoins as well. It’s not surprising to see Solana-based assets also benefiting from this uptrend. This rise in Bitcoin typically generates interest in other cryptocurrency assets.
In addition, the Solana ecosystem is drawing attention with investors responding to potential airdrop announcements and the meme coin frenzy. Notably, there has been a significant increase in the prices of Solana-based meme coins (Dogwifhat, Bonk, Myro, Popcat, Solama, etc.). This indicates that Solana has a large and active community that can quickly respond to new projects and opportunities.
Solana’s Transaction Volume Hits Record Levels
According to Dune Analytics data, Solana’s transaction volume has reached an all-time high. In particular, 15% of this transaction volume is attributed to meme coins. This demonstrates the significant impact of meme coins in the Solana ecosystem and the growing interest of investors in such projects.
On the other hand, this week has seen quite interesting developments in the Solana ecosystem. MEV Infrastructure company Jito Labs grabbed attention by earning a whopping $1.2 million in validator tips on Friday. This seems to be closely linked to an increase in user activity for the project. Similarly, Backpack Exchange recorded its largest daily net inflow after announcing its first snapshot on March 18th. The exchange’s assets exceeded $73 million, with a reported overnight user deposit of $9 million.
Increase in TVL of Solana-Centric Protocol
The TVL (Total Value Locked) of the Solana-centric protocol Kamino Finance increased by 34% following the announcement of its airdrop. This increase is largely thought to be driven by its Lend product.
The possibility of a potential airdrop has sparked great interest among market participants and likely encourages higher volume and activity among users. This situation shows that projects and protocols in the Solana ecosystem are attracting increasing interest and are developing various strategies to expand their user bases.
