Solana (SOL) has surged past XRP to claim the fifth spot among cryptocurrencies, marking a significant milestone with its market cap soaring to a 20-month peak of $33.7 billion, according to CoinMarketCap.
Despite grappling with substantial selling pressure from assets in the FTX bankruptcy estate, the token’s recent upswing owes much to its burgeoning decentralized finance (DeFi) ecosystem and the enthusiasm swirling around meme coins.
This week, Solana’s total value locked (TVL) crossed $1 billion, a feat achieved since the aftermath of FTX’s collapse in November last year. This growth surge is fueled by escalating asset values and sustained inflows into DeFi protocols.
Decentralized exchanges on Solana have witnessed a remarkable surge in trading activity. Orca, for instance, clocked in $746 million in volume on December 15, a stark contrast to its highest prior volume that barely crossed $100 million before November. Much of this heightened activity is credited to meme coins like Bonk, a canine-themed token that now boasts a market cap exceeding $1.2 billion.
As traders eagerly scout for the next meme coin capable of turning modest investments into substantial gains, they typically opt for Solana as the base asset before swapping it for their preferred meme coin. Every time these meme coins are sold back into Solana, it triggers a surge in buying pressure.
However, recent attention has also been directed at Solana itself. The blockchain has showcased improved network stability post a series of outages last year. Moreover, it’s distanced itself from FTX following the exchange’s collapse, which had purchased $1 billion worth of Solana-based tokens before declaring bankruptcy.
At present, SOL is trading at $81.04, registering a 9.14% surge over the past 24 hours. Trading volume has surged by 39% to hit $2.6 billion, as per CoinMarketCap data.
