The meme coins on the Solana ecosystem have been soaring since December last year, but the hype seems to have subsided. Within less than a month, the price of BONK has plummeted more than 70%, while other meme coins such as WIF, POPCAT, and CHIPI have experienced a decline of 70% to over 90%.
With the public blockchain Solana (SOL) skyrocketing since mid-October last year, meme coins on the Solana network have also become a market hotspot. For example, the price of the dog meme coin BONK on the Solana network has surged over 1000% in three months and has been listed on mainstream exchanges such as Binance and Coinbase.
However, the craze for meme coins on the Solana network seems to be fading. According to CoinGecko data, after reaching a historical high of $0.00003416 on December 15 last year, the price of BONK has been continuously declining and has now dropped to $0.00001023, equivalent to a decline of over 70% in less than a month.
Additionally, the dog meme coin Dogwifhat (WIF) has also experienced a decline of over 76% since reaching a historical high of $0.331 on December 22 last year. As of the time of writing, it is priced at $0.07911. Dogwifhat became famous for bringing over 10,000% returns to an early investor.
Other lesser-known meme coins on the Solana network, such as Popcat (POPCAT) and Chipi (CHIPI), have also plummeted. Popcat has dropped over 88% compared to its historical high of $0.04823 on December 22 last year, while Chipi has experienced a decline of over 93% compared to its historical high of $0.001406 on December 25 last year.
Is the Solana network hype fading? Since early December last year, the speculation surrounding the fast transactions, low fees, and the issuance of numerous meme coins on the Solana blockchain seemed to have driven a surge in Solana network activity. This led to a sharp increase in the price of SOL, reaching a new high since April 2022, surpassing $126 on December 25 last year.
At the same time, the Total Value Locked (TVL) on the Solana network has been continuously growing. The TVL increased from $400 million in early November last year and surpassed the $1.5 billion mark on January 2 this year, reaching $1.53 billion, the highest level since August last year.
However, the TVL on Solana has been declining in recent days and has currently dropped to $1.25 billion. According to Coindesk’s interpretation, this could be because the new products launched in the Solana ecosystem after the crazy valuation growth of SOL have not provided enough momentum, leading to a noticeable shift of funds to other blockchains.