Recent developments in Solana-based memecoin projects have led to a significant decrease in demand, following a pullback of gains from December. The decline in interest last week may be attributed to recent rug-pull scams, shaking investor confidence in these assets.
In the past seven days, top Solana memecoins have experienced substantial losses, with Bonk dropping by 25%, dogwifhat (WIF) by 55%, and Popcat (POPCAT) by 38%. The Solana network’s susceptibility to rug-pull scams has instilled fear among users, contributing to the downturn.
According to Tradingview, Bonk has plummeted over 70% from its all-time high recorded on December 15, 2023. Despite this, the popular memecoin had an impressive run last year, gaining over 11,000% and securing listings on major crypto exchanges like Binance and Coinbase.
Data from Dune Analytics shows that memecoin trading volume has been a significant driver of transaction volume in the Solana ecosystem for over a month. Among the top five tokens by 30-day transaction volume on Solana, two are memecoin projects, while the rest are associated with stablecoin projects.
The decline in Solana-based memecoin prices coincides with a drop in daily active addresses on the network. According to The Block’s Data Dashboard, the number of unique addresses transacting daily has steadily decreased from a peak of 981,000 on December 21 to 614,000 in early January. Despite this, Solana closed 2023 as one of the best-performing major altcoin projects, recently experiencing a surge in value, while Bitcoin and Ethereum saw more modest gains.
