Solana meme coins show remarkable growth, although many leading cryptocurrencies suffer heavy losses.
The meme coins segment is doing much better than other cryptocurrencies, CoinGecko data shows.
Dogwifhat (WIF), the largest meme coin by market capitalization based on the Solana blockchain, has risen 18% in the last 24 hours. Popcat (POPCAT) rallied 61%, Jeo Boden (BODEN) gained 53% in price, Slerf (SLERF) surged 16%, and Wen (WEN) is up by 28%.
The gains starkly contrast the broader cryptocurrency market, which has seen more muted performance. After falling below $57,000, Bitcoin has recovered slightly and is trading around $59,000. Meanwhile, the capitalization of the meme coin sector on Solana increased by 14.7% and is now valued at $7.4 billion.
Analytics platform Cryptonary has noted the current market enthusiasm for meme coins.
However, this market segment has its dangers. A recent investigation by crypto sleuth ZachXBT found that 12 projects with Solana-based meme coins were abandoned, costing investors $26.7 million. For example, the I Like This Coin (LIKE) project raised about $7.8 million from investors, subsequently falling by more than half its original value.
A16z CTO Eddy Lazzarin also spoke negatively about the meme coin sector. Lazzarin added that meme coins undermine the long-term vision of cryptocurrencies that keep many in this space and are not very interesting from a technical point of view.