factor
Published: September 12, 2024
Solana [SOL] rose 8% at the start of September’s 2nd week, trading at $135 at press time. The rise was most likely driven by a boost in leading holder positions in a number of meme tokens, sustained by its strong memecoin neighborhood.
Especially, 3 significant memecoins have actually drawn in considerable attention from big financiers. Could this be the secret to a prospective cost rally for SOL?
Solana blazes a trail in DEX volume
Solana just recently attained a remarkable turning point, surpassing rivals to end up being the leading blockchain in decentralized exchange volume.
Previously this year, SOL surpassed BNB and Base, and now leads with an incredible 378% distinction, boasting $3.2 million in volume compared to Base’s $670K. Solana is the only chain with a DEX trader count going beyond one million.
According to the chart below, memes and low-cap tokens have actually controlled the buy volume, peaking at $2 billion in mid-March. This rise accompanied a bull rally that pressed SOL above the $200 mark.
Source: Dune
Ever since, purchase volume has actually dropped roughly 94% to $110 million, however the supremacy of these tokens has actually continued.
In other words, memecoins assist SOL hedge versus Bitcoin’s volatility, bring in both big and brief traders.
A brand-new pattern is emerging: a popular expert has actually highlighted how Solana memecoins are driving leading holder decentralization.
In other words, some significant meme tokens are attaining more fair circulation amongst holders, with each substantial holder owning around 0.1% of the overall supply. The concern is– How is this assisting SOL?
Minimized monopoly alleviates danger
Regardless of recently’s recession, strong memecoins on Solana continue to grow gradually amongst diamond hands, as evidenced by the chart below.
Source: X
With GIGA leading the chart with 10.8 million holders, and POPCAT close behind with 10.4 million, the distinction in leading holder count is very little, marking a minimal 3% distinction.
In addition, even circulation of big holdings decreases centralization danger, avoiding out of proportion impact on the token cost.
A decentralized circulation can bring in a more comprehensive base of individuals, increasing SOL worth.
As revealed previously, memecoins substantially affect SOL. Some traders utilize them as a low-cost option, while others devote with long-lasting faith.
Source: Dune
This is additional supported by holders see Solana memecoins as long-lasting financial investments, with BONK leading weekly activity and WIF following.
Sensible or not, here’s SOL’s market cap in BTC’s terms
Provided the volatility of these memecoins and their strong customer base, lowered monopoly assists SOL reduce dangers throughout market slumps,
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