Solana breaks $200 as memecoin and airdrop interest continue

Solana’s surreal price run continues

article-image

nicemeanin/Shutterstock modified by Blockworks

share

Solana crossed the $200 mark for a few hours Sunday night, recapturing the threshold for just the second time since 2021. 

The rally would be short-lived, as Solana (SOL) tumbled Monday to around $190. And it will still need to climb to around $260 to set a new all-time high, according to CoinGecko. 

After languishing for months amid the fallout of FTX’s collapse, Solana interest picked up near the end of 2023 as airdrops and memecoin speculation drove user interest. Solana’s ecosystem will see another airdrop soon as the cross-chain messaging protocol Wormhole gears up to release its W token, with some of the supply unlocking on Solana.

Read more: Wormhole’s W airdrop to ‘acknowledge and reward’ dedicated users

Partly due to airdrop allocation farming, the total value locked of Solana’s DeFi protocols has continued its steady upward trajectory that began in mid-November, sitting at around $4.6 billion, according to DeFiLlama.

The chain has also seen a notable recent increase in stablecoin volume. Solana processed more than $100 billion in USDT and USDC transfers on multiple days last week, according to Blockworks Research.

But memecoins have become the latest center of gravity in the Solana world. Platforms like DEX Screener have made the low-fee layer-1 a popular venue to speculate on fly-by-night tokens hoping to become the next dogwifhat (WIF). 

Influential crypto figures including Ethereum co-founder Vitalik Buterin chimed in on memecoins last week, with some casting them as a symptom of crypto’s broken moral compass and others saying they’ll be the go-to-market strategy of the future. 

Read more: Crypto leaders insist memecoins have a purpose

Solana has also seen some interest from institutional platforms. Grayscale’s Solana Trust, named GSOL, has seen its market price climb for the past three weeks. GSOL’s net asset value per share, or the value per share of GSOL, is near its highest point since the product started trading in April 2023. It’s not Grayscale’s only foray into SOL. Its staking fund, which launched last month, included Solana among a group of assets being staked.

Read more: Grayscale announces fund aimed at optimizing staking rewards

21Shares and VanEck are a couple of other firms offering exchange-traded products that provide exposure to the Solana ecosystem.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.