Memecoins on the Solana network have seen a significant rise, increasing by over 30% in the last 24 hours.
Solana-Based Memecoins Soar As SOL Recovers 38% From Monday's Low
This rise comes as Solana's native token, SOL, rebounded sharply from earlier losses and led gains in the crypto market.
Memecoins such as popcat (POPCAT) and dogwifhat (WIF) on the Solana blockchain rallied as much as 25% after a slight retracement, with a notable recovery.
Smaller tokens such as MUMU and catdog (CATDOG) are up 30% according to recent data. This strong performance contrasts with major memecoins on other blockchains such as Dogecoin (DOGE) and Pepe (PEPE), which experienced declines of up to 5%.
Solana's overall network activity more than doubled, with transaction volumes rising from $1.5 billion on Monday to more than $3.3 billion. Fees generated on the Solana network have also increased significantly, reaching $750,000 per day.
In particular, the Pump platform popular for issuing new memecoins has seen its fees rise from under $300,000 on Monday to $535,000 in the last 24 hours, indicating increased risk-taking activity among traders.
The increase in memecoins and network activity comes as SOL itself is experiencing a significant recovery.
The token is trading above $150 today, up 7.5%. SOL dropped from $145 to as low as $112 on Monday amid a broader market pullback, but has since outperformed many major tokens.
The optimism surrounding Solana is fueled in part by the prospect of a potential SOL exchange-traded fund (ETF). This could be the third spot token offered to professional US investors, following Bitcoin (BTC) and Ethereum (ETH).
*This is not investment advice.