Solana’s native cryptocurrency, SOL, shows signs of potential upside as on-chain metrics point to a resurgence in meme coin activity on the Solana blockchain. This phenomenon bears similarities to last year’s meme coin frenzy, which catapulted SOL’s price to nearly $121.
Meme coin resurgence boosts Solana’s prospects
Recent data suggests a surge in trading volumes and user engagement across several meme coins that emerged in December. Notably, the viral favorite, “dogwifhat” (WIF), has witnessed a substantial increase in value, rising as much as 50% to 48 cents within the past 24 hours.
The catalyst for this surge came from Franklin Templeton, a traditional finance firm, referencing the “wif hat” meme in a post, which sparked positive sentiment among crypto enthusiasts.
Franklin Templeton impressed by Solana’s ecosystem growth
In follow-up tweets, Franklin Templeton’s digital assets team expressed their impression of the growth of Solana-based applications in the fourth quarter. They highlighted Solana as one of the ecosystems they closely monitor alongside Bitcoin and Ethereum.
This acknowledgment from a respected financial institution further boosts confidence in Solana’s potential.
Meme tokens gain traction
Beyond WIF, other meme tokens such as “usedcar” (USEDCAR), “popcat” (POPCAT), and “kpop” (KPOP) have also experienced significant spikes, reaching gains of up to 50%.
However, it’s essential to note that these tokens have relatively lower market capitalizations, each below $20 million, according to data from tracking service Birdeye.
While the recent resurgence in meme coin activity is promising, it’s essential to remember that many viral Solana tokens plummeted by as much as 80% from their peak as the meme coin frenzy subsided.
Early investors capitalized on their substantial gains, including those who had originally invested only a small amount and reaped millions in profits.
A recent announcement from Solana Mobile about the upcoming “Two” phone, set to ship in 2025 with a price tag of $450, has also contributed to the buzz around Solana. Traders speculate that purchasers of the “Two” phone could receive airdrops and applications from Solana-based projects, similar to the $650 airdrop offered to Saga phone owners last year.
This anticipation has driven up the prices of projects like MYRO, which hinted at offering something special to “Two” phone buyers.
Solana’s mobile success continues
This phone is the second offering from Solana Mobile, following the remarkable success of the Saga phone. Despite initial skepticism, Saga achieved tremendous popularity, reinforcing the company’s position in the mobile technology market.
Additionally, data reveals a consistent uptrend in the value locked within Solana applications over the past week. This growth follows a brief decline in the first week of 2024, signaling renewed confidence and activity within the Solana ecosystem.