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Solana (SOL) drops $4.80B from its market cap as meme coin mania fades

By:
on Jun 24, 2024
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  • The alt’s market cap dipped from $61.99B to $57.21B over the past day.
  • The latest meme crypto cycle drove Solana to unprecedented highs.
  • Market dynamics are shifting, with investors ditching memes for assets with real utility.

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Solana was among the altcoins that outperformed during the latest market rally, with SOL-based meme tokens such as WIF, BONK, and BOME hitting new all-time highs.

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Solana’s market cap neared $90 billion in March as meme digital coins dominated trends.

However, dynamics seem to have shifted as the metric nosedived in the past few months.

The altcoin saw its market cap sliding by over $.4.80 billion within the last 24 hours, down from $61.99 billion to $57.21 billion.

Source – Coinmarketcap

SOL price confirms the latest downward performance of the project.

Bears have dragged the token from 6 June levels of $170 to today’s value of $127.78 – a 25% monthly plunge.

Some believe Solana will hardly recover in the upcoming sessions.

For instance, Helius Labs CEO Mert Mumtaz claims to leave the market forever as “crypto is over.”

Meme crypto craze wanes

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While themed digital assets dominated the latest bull cycle in the crypto world, their influence has faded.

Top meme tokens, including Shiba Inu, Dogecoin, and PEPE, display weakness after robust uptrends, extending their weekly losses with double-digit declines.

The total market cap of meme cryptocurrencies declined by 6.55% over the past day to $44.35 billion.

Top Solana-based meme coins also flashed bearish tendencies, losing up to 30% on their 7D charts.

Source – Forbes

Meme digital assets seem to lose test as millions of them, mostly tied to celebrities, flood the market.

For instance, around 500K meme tokens joined the crypto market in May alone.

Unfortunately, most have emerged as rug-pull projects, denting the themed crypto market.

While meme tokens appear to have reached the end, some believe Solana is eyeing a “ghost chain” status.

Besides the fading meme coin craze, several interconnected factors contributed to SOL’s latest price dip.

Network downtimes and surging competition from rival blockchains culminated the downside as bears dragged Bitcoin toward $60K on Monday.

The bellwether crypto hovered at $61,094 at press time, following a 5.02% decline over the past day.

The latest downswing came after extended negative sentiment in the market.

Bitcoin seems ready to gather liquidity at the $59,625 – $62,540 FVG (Fair Value Gap).

That means BTC can lose another chuck this week to tap the $59,625 mark before rebounding.

Enthusiasts will likely watch Bitcoin’s anticipated near-term bounce and whether meme tokens can capitalize on the sentiments to recover.

Altcoins Blockchain technology Crypto Crypto business Meme Coin