Memecoin trading on Solana’s network is driving its recent price increase, the altcoin eth killer is back above $170.
Solana has increased by more than 5% in the last 24 hours and is currently trading at $173.07, according to CoinMarketCap.
According to Zeta Markets Founder Tristan Frizza, the increase in the token’s value is primarily due to increased memecoin trading activity on the Solana network.
“Memecoins have certainly become a significant driver of activity on Solana. Beyond speculation, this showcases Solana’s ability to handle high transaction volumes with low fees, making it the perfect environment for retail users,” said Frizza.
To demonstrate this, Frizza cited on-chain indicators such as Solana’s total value locked (TVL) exceeding $4.9 billion. “This indicates robust network activity, and the number of active users has also been constantly growing, with monthly active addresses hitting a new all-time high of 41.65 million in May,” Frizza stated.
According to this week’s Bitfinex Alpha report, the Solana DeFi ecosystem is growing, as evidenced by loans, liquid staking, and eternal markets.
According to Bitfinex analysts, Solana’s surge is credited to its superior transaction speed and scalability compared to other blockchains. Despite ranking below Ethereum in TVL, Solana stands second in decentralized exchange volumes, indicating its rising popularity among users.”
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