🚀 Solana’s DeFi activity could be good news for SOL’s price – Here’s why
Unique Active Wallets (UAWs) on Solana [SOL] recorded an incredible surge in the last 24 hours, according to DappRadar. Decentralized applications including Jupiter, Raydium, and Magic Eden contributed to the aforementioned surge.
TopCryptoNews found that UAWs on aggregator Jupiter Exchange were 307,100 in number, representing a 251% hike. For Raydium, it was an uptick to 285,200 while NFT activity picked up. Finally, the same hiked by up to 178% on Magic Eden.
🔸 Memecoins are driving SOL up and down
The rise in activity on Raydium and Jupiter could be linked to increasing memecoin activity in the market. An assessment of the platforms revealed that the buzzing memecoin narrative can be attributed to GameStop (GME) and legendary trader Keith Gill, popularly known as “Roaring Kitty.”
On 7 June, derivative tokens linked to the trader appeared in high numbers. Also, these Solana-based tokens jumped to mind-blowing market caps within just short periods.
This hike also indicated an increase in demand for SOL. However, at press time, Solana’s price was valued at $162.44, representing a 5.44% fall in the last 24 hours.
For many degenerates, the idea of buying a memecoin is not to hold for a long time. In crypto, a degenerate refers to an individual who engages in trading highly-volatile and speculative tokens with no fundamentals. As such, when the tokens reach a certain level of gain, they exchange it for the Solana native token, and sell it for a stablecoin or fiat.
Recently, there has been a plethora of such pumps and dumps, and it might not stop anytime soon. Should this be the case, SOL might continue to move sideways.
🔸 Can the token bank on BTC?
On the other hand, a hike in buying pressure accompanied by high volatility could trigger a breakout in price. However, by the look of things, SOL could drop below $160 in the short term.
