Solana meme coins are showing remarkable growth, even though many leading cryptocurrencies are experiencing huge losses.
CoinGecko data shows that the meme sector is performing much better than other cryptocurrencies.
Dojoifat (WIF), the largest meme by market cap based on the Solana chain, is up 18% in the past 24 hours. Popcat (POPCAT) is up 61%, Jeo Boden (BODEN) is up 53%, Slerf (SLERF) is up 16%, and Wen (WEN) is up 28%.
The gains stand in stark contrast to the broader cryptocurrency market, which has seen a more subdued performance. After falling below $57,000, Bitcoin has recovered slightly and is trading at around $59,000. Meanwhile, Solana’s meme segment has increased its capitalization by 14.7% and is now valued at $7.4 billion.
Analytics platform Cryptonary noted the current market enthusiasm for memecoins.
However, this sector of the market has its risks. A recent investigation by cryptocurrency investigator ZachXBT found that 12 projects using Solana-based meme coins were abandoned, costing investors $26.7 million. For example, the “I Like This Coin” (LIKE) project raised about $7.8 million from investors, but then dropped by more than half its original value.
Eddy Lazzarin, CTO of A16z, also spoke negatively about the meme sector. Lazarin added that memes undermine the long-term vision of cryptocurrencies that keep many in the field and are not very interesting from a technical standpoint.