TL;DR
- Solana sees record surge in fees and revenue due to memecoin boom.
- Five of the top ten protocols by fees generated in the past 24 hours are on the Solana blockchain.
- Solana (SOL) price hits highest level since November 2021, fueled by speculation and memecoins.
The rise of memecoins has generated a flurry of activity on the Solana blockchain, resulting in a record surge in fees and generating unprecedented revenue for its decentralized applications (DApps).
According to decentralized finance (DeFi) analyst Patrick Scott, in just 24 hours, five of the top ten protocols by fees generated belong to the Solana network.
Among the most notable is Raydium, an automated market maker, which hit $11.31 million in fees on November 17.
Additionally, Jito, a liquid staking protocol, achieved its third-best day with $9.87 million in fees.
The memecoin phenomenon has been one of the main drivers of this activity.
Tokens like Peanut (PNUT), a squirrel-themed asset, have seen astonishing increases of over 2,700% in two weeks, reaching a market cap of $2.4 billion.
This momentum was further boosted by the popularity of Elon Musk‘s mentions on X (formerly Twitter), who is known for his influence on cryptocurrencies.
Another notable coin, Dogwifhat (WIF), saw a significant surge after its listing on Coinbase on November 15, which also contributed to a surge of interest in the memecoin market.
The Solana blockchain, which has established itself as a benchmark for fast, low-cost transactions, has seen its native token, SOL, hit $242 on Nov. 17, its highest level since November 2021.
This rally has been fueled by speculation around memecoins and the growing adoption of the network. In parallel, Solana’s market cap has surpassed $112 billion, a 44% increase from its previous peak of $77 billion.
The rise of Solana memecoins and institutional impact
Solana‘s growth has also been supported by increased institutional investment.
During Q3 2024, Solana saw $173 million invested in its decentralized applications (DApps), representing a 54% increase from the previous quarter.
This boom reflects renewed interest in the platform, despite a decline in the number of funding rounds.
This growth is significant not only for Solana, but for the broader cryptocurrency ecosystem, as it marks a shift towards a greater focus on applications and staking.
The influx of capital and rising fees indicate that while memecoins may be driving activity in the short term, Solana continues to gain relevance as a robust platform for DeFi and other crypto projects.
Despite the volatility that comes with the memecoin boom, the Solana blockchain is showing signs of establishing itself as one of the leading blockchain networks in the space, with its programmed inflation and ability to attract both institutional investors and new users.
The future of Solana will depend on how these spikes in activity are managed and whether this trend can be sustained beyond the current memecoin boom.