The demand for Solana SOL

• -0.06%
• based memecoins has decreased in the past week as they retrace a significant portion of December 2023’s gains.

The ten top Solana-based memecoins by market capitalization, such as Bonk (BONK -2.53%), dogwifhat (WIF) and Popcat (POPCAT) have declined by 25%, 55% and 38%, respectively, in the past seven days.

Bonk has fallen by over 70% from its all-time high recorded on Dec. 15, 2023, according to The Block’s Prices Page. The memecoin had posted gains of over 11,000% during its lifespan last year and is listed on prominent cryptocurrency exchanges, such as Binance and Coinbase.

Memecoins drive Solana trading volume

Memecoin trading has been a significant driving factor in transaction volume on Solana for over one month, according to data from Dune Analytics. Among the top five tokens by 30-day trading volume on Solana, two pairs involve memecoins, while the remaining volume is associated with stablecoins.

The top five tokens by 30-day trading volume on Solana. Image: Dune Analytics, @ilemi

However, the decrease in Solana-based memecoin prices has coincided with a decline in daily active addresses on the network. According to The Block’s Data Dashboard, the number of unique addresses involved in daily transactions on the Solana blockchain has fallen steadily since mid-December. The daily active address count has declined from a multi-month high of 981,000 on Dec. 21 to a reading of 614,000 in early January.

Solana closed 2023 as the best-performing major altcoin. However, in the last 24 hours, the token has experienced a decline of over 2%, while bitcoin and ether have gained 1.2% and 0.2%, respectively. According to The Block’s Price Page, the altcoin was changing hands for $93.20 at 7:00 a.m. ET.

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