Memecoin Demand Slump on Solana Sends Bonk Tumbling 70% from All-Time High

Crypto News- The enthusiasm for Solana (SOL) memecoins has taken a noticeable hit in the past week, erasing a substantial portion of the gains made in December 2023.

In the last seven days, the top ten Solana-based memecoins, including Bonk (BONK), dogwifhat (WIF), and Popcat (POPCAT), have seen declines of 25%, 55%, and 38%, respectively.

Memecoin Demand Slump on Solana Sends Bonk Tumbling 70% from All-Time High

Bonk, which had reached an all-time high on December 15, 2023, has now plunged by over 70%, marking a significant pullback from its remarkable 11,000% gains in the previous year. The memecoin holds a prominent position on major cryptocurrency exchanges like Binance and Coinbase.

Solana Transaction Volume Surges on the Wings of Memecoin Trading

The role of memecoin trading in boosting transaction volume on the Solana network has been crucial for more than a month, with two of the top five tokens by 30-day trading volume involving memecoins. However, the recent drop in Solana-based memecoin prices aligns with a decline in daily active addresses on the network. According to The Block’s Data Dashboard, daily active addresses on the Solana blockchain have steadily fallen from a multi-month high of 981,000 on December 21 to 614,000 in early January.

Despite finishing 2023 as the best-performing major altcoin, Solana has witnessed a decline of over 2% in the last 24 hours, in contrast to gains of 1.2% for bitcoin and 0.2% for ether, respectively. As of 7:00 a.m. ET, Solana was trading at $93.20, as reported by The Block’s Price Page.