DeFi
Solana continues its rally fueled by Memecoins and DeFi activity
Memecoin trading on Solana’s network is behind its recent price increase, the altcoin eth killer is back above $170.
Solana is up over 5% in the last 24 hours and is currently trade at $173.07, according to CoinMarketCap.
Solana Price, Source: CoinMarketCap
According to Tristan Frizza, founder of Zeta Markets, the increase in the value of the token is mainly due to increase in memecoin trading activity on the Solana network.
“Memecoins have certainly become a significant driver of activity on Solana. Beyond speculation, this demonstrates Solana’s ability to handle high transaction volumes with low fees, making it the ideal environment for retail users,” Frizza said.
To demonstrate this, Frizza cited on-chain metrics such as Solana’s total value locked (TVL) exceeding $4.9 billion. “This indicates robust network activity, and the number of active users has also been steadily increasing, with monthly active addresses reaching a new all-time high of 41.65 million in May,” Frizza said.
According to this week’s Bitfinex Alpha report, the Solana DeFi ecosystem is growing, as evidenced by lending, liquid staking, and eternal markets.
According to Bitfinex analysts, Solana’s rise is attributed to its superior transaction speed and scalability compared to other blockchains. Although it is ranked below Ethereum in TVL, Solana ranks second in terms of decentralized exchange volumes, indicating its growing popularity among users.
Read also: Solnarize raises $350,000 for Solar Defender game on Solana