30s Summary

Solana’s SOL token has increased 12.1% in value from Oct. 11-18, partly due to rising demand for memecoins, which has driven volumes and value on the network. Speculation around this trend’s sustainability is ongoing. Notable memecoins include Goatseus Maximus, which hit $400 million market value within a week. Other memecoins on Solana’s network, like SPX6900 and Apu Apustaja, also saw substantial price jumps. The impact on SOL’s price and network performance is assessed by examining the total value locked (TVL); Solana’s TVL recently hit a two-year high. Despite unpredictable future trends, SOL could potentially reach $180 given its current competitive advantages.

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Between Oct. 11 and Oct. 18, Solana’s SOL token saw a 12.1% increase in value. Interestingly, the rise in value was partially driven by the growing demand for meme-inspired cryptocurrencies or “memecoins.” This increased demand led to higher volumes, fees, and overall value locked into the network.

There’s currently a hot debate going on among traders about the sustainability of this memecoin craze and how this influx of activity is affecting SOL’s price.

There doesn’t seem to be a solid reason behind the rising demand for memecoins. But if you’re looking for an example of their viral nature, take a look at Goatseus Maximus (GOAT). This memecoin jumped to a huge $400 million market value in just a week, thanks to chatter about an upcoming artificial intelligence bot. Turns out the bot was just promoting the GOAT token.

Several other memecoins on the Solana network have also seen drastic price hikes in October. For example, SPX6900 (SPX) was up 379%, Apu Apustaja (APU) climbed 170%, and FWOG saw a 134% increase. Prices over 90% were also seen in PUPS and MAGA (TRUMP). As these memecoins increase in value, they get more and more buzz on social media, leading to even more interest.

But will this flurry of activity make a significant impact on SOL’s price? And how is it affecting the network’s performance? One way to measure this is by looking at the total value locked (TVL), which shows the total amount of money in the network’s smart contracts.

Recently, Solana’s total deposits soared to a two-year high, getting close to 41 million SOL, a 13% increase month-over-month.

But to fully understand SOL’s demand, we need to look at onchain activity as well. Without having significant TVL, a decentralized exchange (DEX) can still record high volumes. In a recent comparison, Solana beat Ethereum in network activity for the week.

In terms of weekly growth in DEX volumes, Solana’s 43% increase stands out among its competitors. Even Ethereum’s so-called layer-2 solutions, known for their low transaction fees, couldn’t keep up with Solana.

Trying to predict if the memecoin surge will continue is like trying to predict the weather. However, given Solana’s competitive advantage from its high validator capacity, it’s feasible that SOL could reach $180. Solana seems to be in a good position to grow in areas like artificial intelligence infrastructure, Web3 applications, gaming, prediction markets, and more.

Remember, this information is for general use. It doesn’t represent any specific investment or legal advice.

Source: Cointelegraph