Solana outperforms Ethereum in trading volume amid amplified demand for memecoins

Solana (SOL) network activity intensified over the weekend amid augmented demand for meme coins. That had it outpacing Ethereum (ETH) in daily trading volume.

According to DeFiLlama, SOL’s daily trading volume stands at $3.032 billion, whereas Ethereum’s hovers at $2.037 billion.

Also, Solana’s DeFi total value locked gained over 80% within the previous month, the most notable network growth amongst the top five based on DeFi TVL. The metric explores two-year highs of $4.164 billion at press time.

Solana’s bullishness

The Ethereum layer1 rival has recorded substantial price upswings even as the broader market consolidated. The token gained over 10% in the previous day to hover at $204.30 during this writing.

SOL has traded beneath $200 since December 2021. Meanwhile, the massive 800% upsurge within the past twelve months has propelled Solana to reduce its gap to the all-time highs.

Memecoins drive Solana

Increased interest in themed cryptocurrencies has contributed to SOL’s network boom. For instance, Book of Meme (BOME) has trended since its launch as its market cap rallied to over $1 billion within two days of debut.

Also, data confirms amplified memecoins trading on the Solana blockchain. Lookonchain’s X post reveals a player who traded eleven meme tokens within three days. Unfortunately, FOMO could have cost the trader since he lost approximately $147K (754 SOL coins).

Therefore, caution remains crucial when interacting with Solana memecoins as volatility remains elevated. Moreover, data shows whales indulging in profit-taking.

Large-scale investors are booking returns by reducing their holdings following SOL’s significant price upswings.

Address “BU6N2Z” deposited SOL worth $39.85M (200K coins) into Binance over the past two days.

Currently, the trader holds $323M in Solana (1.62M tokens), with SOL worth $246M (1.23M assets staked and $77M (387K tokens) retained in the wallet.