Solana has sustained its rally over the past 24 hours despite a downturn in the broader cryptocurrency market.
According to The Block’s Price Page, SOL, the native token of the Solana network, experienced an increase of 5% in the past 24 hours. While the broader cryptocurrency market capitalization experienced a downturn of over 2% in the past day, the altcoin is defying the downtrend and maintaining its weekly rally, according to CoinGecko data.
Solana-based memecoins driving market activity
Much of the market activity on Solana is focused on the network’s memecoins. All of the top four memecoins by market cap on the blockchain have posted impressive gains in the past 24 hours. Dogwifhat has gained 28%, Bonk is up 12%, and Myro and Popcat have increased by 27% and 67%, respectively. “Meme coins are clearly having a moment on Solana because they are fun and easily accessible,” Colosseum Co-founder Clay Robbins told The Block.
According to Zeta Markets CEO Tristan Frizza, Solana’s rally amidst a broader crypto pullback is not an anomaly but a harbinger of its increasing relevance in the space. “The blockchain’s ascent is not merely speculative—it’s rooted in genuine user engagement. Its potential has only been reinforced as we witness its transaction volumes and DeFi applications flourish, Frizza told The Block.
Solana’s daily number of active addresses spike
The seven-day moving average of daily active addresses on the Solana blockchain has reached a multi-year high, according to The Block’s Data Dashboard. In a sign of increased network activity, the daily count of the number of unique addresses that signed transactions on Solana jumped from around 660,000 to over one million in a 24-hour period from Tuesday to Wednesday of this week.
BNB bucks downtrend, posting daily gains
Another altcoin sustaining its rally in the face of a broader crypto pullback is BNB. The Binance exchange token has posted a more muted 1% increase in the past 24 hours.
QCP Capital analysts have observed a notable trend of capital rotation from bitcoin and ether into large-cap altcoins, highlighting significant overnight increases in SOL and BNB.
“An interesting observation is the rotation of capital into large cap alts with SOL and BNB significantly higher overnight. BNB in particular has managed to create a virtuous self-reinforcing cycle through its launchpool as BNB stakers sell their hefty airdrops and buy even more BNB to compound returns for the next launchpool release,” QCP Capital analysts said.
Bitcoin performs slight retracement
Compared to Sol’s gains, the price of bitcoin has experienced a pullback after its early-week rally.
The largest digital asset by market capitalization decreased 3% in the past 24 hours and was changing hands for $70,825 at 1:55 p.m. ET, according to The Block’s Price Page.
Also, the seven-day moving average for bitcoin trading volume across all major centralized cryptocurrency exchanges has dropped from a multi-month high of $27.64 billion at the beginning of this week to $22.94 billion, according to The Block’s Data Dashboard. This represents a decrease of over 18%.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
