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Solana Meme Coins Rise Despite Crypto Market Decline
Solana meme coins show notable growth, even as many major cryptocurrencies suffer heavy losses.
The meme coin segment is faring much better than other cryptocurrencies, CoinGecko data shows.
Source: CoinGecko
Cagnetta (WIFE), the largest meme coin by market cap based on Solana blockchain, grew by 18% in the last 24 hours. Popcat (POPCAT) gained 61%, Jeo Boden (BODEN) gained 53%, Slerf (SLERF) rose 16% and Wen (WEN) rose 28%.
The gains are in stark contrast to the broader cryptocurrency market, which has seen more subdued performance. After falling below $57,000, Bitcoin has recovered slightly and is trading around $59,000. Meanwhile, the capitalization of the meme coin sector continues Solana rose 14.7% and is now valued at $7.4 billion.
Analytics platform Cryptonary has noted the market’s current enthusiasm for meme coins.
If your crypto coins are not up at least 500% or double digits today, you are in the wrong coins
The Memecoin supercycle in full swing pic.twitter.com/9BzNZiPHXg
— Criptonario (@cryptonario) May 2, 2024
However, this market segment has its dangers. A recent investigation by cryptocurrency detective ZachXBT found those 12 projects based in Solana meme coins they were abandoned, costing investors $26.7 million. For example, the I Like This Coin (LIKE) project raised approximately $7.8 million from investors, subsequently losing more than half of its original value.
Also A16z CTO Eddy Lazzarin spoke negatively on the meme coin sector. Lazzarin added that meme coins undermine the long-term view of cryptocurrencies that keep many in this space and are not very interesting from a technical perspective.