Solana (SOL), a top-tier layer one (L1) blockchain with vibrant DeFi development activities, has shown early signs of dethroning Ethereum from the smart contract leader in the near future. Despite Solana being way smaller compared to Ethereum (ETH), it has topped DEX daily volumes of about $3.7 billion whereas the latter registered $2.4 billion, according to market data from defillama.
The rise of Solana-based web3 platforms has helped in the palpable growth in the Total Value Locked (TVL), which stands at around $4.2 billion and has a stablecoins market cap of about $2.67 billion.
Rise of Solana Meme Coins
The rise of the Solana network to a respectable web3 ecosystem has heavily been influenced by its meme coins. Led by Bonk (BONK), dogwifhat (WIF), BOOK OF MEME (BOME), and Myro (MYRO) among many others, the Solana-based meme coins have grown to a total valuation of $6.387 billion, up 42 percent in the past 24 hours, and an average daily trading volume of about $3 billion.
The rise of Solana-based meme coins has significantly been influenced by trading bots, as cryptocurrency traders attempt to make the maximum profit from the frenzy. Notably, the listing of WIF and BONK on the Binance crypto exchange has helped increase liquidity on SOL-based meme coins and widen the growth prospects.
Impact on SOL Price Action
Solana price has largely been the biggest beneficiary of the meme coin frenzy in the recent past. With SOL having rallied above $200 for the first time in more than two years, Mathew Dixon, CEO Evai, noted that a new ATH will inevitably happen in the coming weeks.
Notably, the crypto analyst has issued a midterm SOL price target of $256, which lies between the 1.68 and 2.0 daily Fibonacci Extension.
