Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
The memecoin craze on the Solana (CRYPTO: SOL) blockchain appears to be hitting a rough patch, with popular memecoins losing substantial gains over the past 24 hours.
What Happened: Meme coin BOME saw its price plummet by nearly 50% in the past 24 hours, pushing its market capitalization below $500 million.
This sharp decline wasn't an isolated incident, with other prominent memecoins like Pepe (CRYPTO: PEPE), Dogwifhat (CRYPTO: WIF), Floki Inu (CRYPTO: FLOKI) and Bonk (CRYPTO: BONK) all experiencing significant price drops of around 20% within the same timeframe.
In contrast to the falling fortunes of these digital assets, Slerf, another meme coin on the Solana network, has seen its market value soar to $612 million, overtaking BOME to become the eighth-largest meme coin by market capitalization.
This surge in SLERF's value has been accompanied by a wave of support from cryptocurrency exchanges such as BingX, HTX, and Bitget.
These platforms have pledged to donate all transaction fees generated from SLERF trades to the coin's community.
As a result, the designated donation address for SLERF has amassed over 2,300 SOL (equivalent to roughly $430,000) and an additional $16,000 in various SPL tokens.
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Why It Matters: The backdrop to these dramatic shifts in meme coin valuations is the broader performance of the Solana blockchain, particularly in decentralized exchange (DEX) trading volumes.
Data from CoinGecko highlights that Solana's top three DEXs—Raydium, Jupiter and Orca—have outperformed their counterparts on other blockchains.
Notably, Raydium's trading volume hit $2.4 billion in the past 24 hours, dwarfing Uniswap V3's $1.3 billion on the Ethereum network.
Further emphasizing Solana's growing dominance in the decentralized finance (DeFi) space, Token Terminal reported that Solana's on-chain meme coin trading activity has propelled its fee capture to $17.8 million over the past week, surpassing Bitcoin's $17.5 million.
Moreover, Solana has consistently captured over $3 million in daily fees for three consecutive days, setting new all-time highs.
What's Next: It remains to be seen whether the meme coin mania is over, or if this is just a speed bump on the way to a "meme coin supercycle."
Read Next: Bitcoin Plunges Below $63,000, Triggers Market-Wide Crypto Selloff
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