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  • solanaSolana$164.292.51%

Solana Rebound Falters as Meme Coin Activity Declines

Solana Rebound Falters as Meme Coin Activity Declines

Solana’s price recovery falters as meme coin trading on SOL blockchain fades and network activity drops to significant lows.

As a result of geopolitical tensions, investors are increasingly focusing on assets with robust fundamentals, and Solana (SOL) is facing additional downside risk amid a significant decrease in meme coin activity on the blockchain. The Solana price was trading at $144 at the time of publication, following an 8% decline in the previous seven days. Additionally, the total market capitalization of meme coins generated on the blockchain has fallen below $10 billion.

Solana Price gets hit with adverse consequences

Today, June 19, the price of SOL remained under adverse pressure, as per CoinMarketCap’s data, which indicated that daily trading volumes had decreased to $3.56. In the past seven days, the altcoin has experienced significant volatility, fluctuating between a weekly high of $160 and a weekly low of $140.

Although the price decline of SOL is consistent with the overall trajectory of the altcoin market, it is currently exposed to additional downside risks. The Total Value Locked (TVL) on the Solana network is $8.34 billion, a significant decrease from the peak of $1.98 billion in January, according to data from DeFiLlama.

The other indicator of declining network growth is the declining market capitalization of stablecoins generated on the blockchain. This metric has decreased within six weeks from $13 billion to $8.34 billion.

Solana Price Outlook as DeFi TVL Plunges
SOL DeFi TVL (Source: DeFiLlama)

Furthermore, the ongoing capital rotation from altcoins to Bitcoin also contributes to a pessimistic Solana price forecast. This rotation is evident in the declining altcoin season index, which is presently at 20, indicating that it is Bitcoin season and that altcoins, including SOL, are experiencing bearish pressure.

The activity of the SOL Meme Coin has ceased

Despite the increased likelihood of a spot Solana ETF approval, the price recovery is derailed by a substantial decrease in meme coin activity on the SOL blockchain. The total market capitalization of meme tokens generated on the network has decreased below $10 billion due to substantial losses, according to data from CoinGecko.

The average value of the top five meme coins on the network has decreased by 10% over the past seven days. Additionally, the market interest in these tokens is diminishing, as no trading volume has been recorded exceeding $300 million in the past 24 hours.

Will Solana Price Drop as Meme Coin Activity Fizzles?
Top 5 Solana Meme Coins (Source: CoinGecko)

Solana meme coin launchpad PumpFun has also observed substantial decreases in decentralized exchange (DEX) volumes. The weekly DEX volumes on the PumpFun launchpad reached $351 million, the lowest since September 2024, according to DeFiLlama. In the past, this launchpad has been instrumental in the growth of SOL’s price; however, its decreased utilization may result in bearish implications for SOL.

Nevertheless, institutional interest in SOL is increasing even though the meme coin hype has cooled off, and the adverse risk to the Solana price has increased. SOL Strategies has recently submitted an application for a Nasdaq listing, indicating a treasury of over 420,000 SOL tokens.

In conclusion, Solana’s price is experiencing an additional adverse risk due to decreased network activity. Additionally, the price is negatively affected by the diminished interest in meme currencies generated on the SOL network, which may exacerbate the downward pressure.

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