After the December frenzy, the price of Solana Meme coins drops by 80%

When bonk tokens began a multiweek surge of over 1,000% and gained listings on major exchanges Binance and Coinbase, the Solana ecosystem took off in December.


The crazed desire for meme currencies issued on the Solana network appears to have subsided over the past week as the prices of previous favorites continue to plummet and newer tokens are unable to attract a significant community. The dog-themed token bonk (BONK), whose values increased by over 1,000% in a span of three months, is now more than 70% lower than when it peaked in December and was listed on a number of notable exchanges.
With an image of a dog wearing a hat, Dogwifhat became popular among cryptocurrency investors. However, the project is now down about 80% despite creating a lot of anticipation when it promised early investors a return on their investment of more than 10,000%.


Other, lesser-known tokens with a cat motif, popcat (POPCAT) and chipi (CHIPI), have declined more than 90% from their lifetime peaks, despite the fact that their communities are still holding out hope for a comeback. When bonk tokens began a multiweek surge of over 1,000% and gained listings on major exchanges Binance and Coinbase, the Solana ecosystem took off in December. That appeared to spark activity on the network, as other major tokens were swiftly flipped by SOL's market capitalization, and prices of Solana's Saga phone shot up to over $5,000, even though it hadn't been able to sell out as recently as October. Metrics from the previous week indicate that Solana has also emerged as the most appealing option for on-chain traders, surpassing Ethereum's trading volumes and network fees on a rolling seven-day basis.


Since early December, the network has been propelled by excitement about the blockchain's quick transactions, low fees, and a lottery of meme currency issuances, which has caused the price of SOL tokens to rise from $38 at the beginning of November to about $120. Value locked on Solana applications increased concurrently, reaching levels last seen in July 2022 with tokens valued at $1.3 billion, up from $400 million in November.

However, when prices skyrocketed, other launches failed to gain traction, and money appeared to be shifting to opportunities on other blockchains, profit-taking began in late December.