Solana meme coins are experiencing impressive growth, despite significant losses in many top cryptocurrencies.
Data from CoinGecko reveals that the meme coins sector is outperforming other digital currencies. Dogwifhat (WIF), the largest meme coin on the Solana blockchain, has surged by 18% in the last 24 hours. Popcat (POPCAT) saw a remarkable rally of 61%, Jeo Boden (BODEN) gained 53%, Slerf (SLERF) surged by 16%, and Wen (WEN) recorded a 28% increase in price.
These gains stand in stark contrast to the overall cryptocurrency market, which has shown more modest performance. While Bitcoin briefly dropped below $57,000, it has since recovered slightly and is currently trading around $59,000. In the meantime, the market capitalization of meme coins on Solana has seen a significant rise of 14.7%, reaching a total value of $7.4 billion.
Cryptonary, an analytics platform, has highlighted the growing enthusiasm for meme coins within the market. However, this sector also poses risks. An investigation conducted by crypto investigator ZachXBT revealed that 12 projects involving Solana-based meme coins were abandoned, resulting in losses of $26.7 million for investors. For instance, the I Like This Coin (LIKE) project, which raised around $7.8 million, plummeted by more than half of its initial value.
Eddy Lazzarin, the CTO of A16z, expressed concerns about the meme coin sector, stating that they detract from the long-term vision of cryptocurrencies that many in the industry uphold and are lacking in technical interest.
In related news, ZachXBT reported that Solana meme coins managed to raise an impressive $149 million in just one week.