Solana (SOL) price hit a 35-day peak of $170 on May 17, up 25% for the month.
The GameStop saga has triggered a surge in demand for Solana-hosted meme coins like Dogwifhat (WIF) and BONK.
Solana trading volume has surged by $2.7 billion between May 12 and May 17.
Solana, the prominent blockchain platform, has emerged as the top-performing asset among the top 10 cryptocurrencies by market capitalization this week. The resurgence of the GameStop saga has sparked a renewed interest in meme coins, causing investors to flock towards prominent Solana-hosted meme projects such as Dogwifhat (WIF) and BONK.
This sudden surge in native meme coin demand has inadvertently led to an increased demand for SOL, Solana’s native cryptocurrency. As a result, Solana’s price has skyrocketed by 22% since the GameStop rally began on May 14. At the time of writing on May 17, SOL is trading at $166, representing a remarkable 44% increase for the month.
Interestingly, a closer examination of the daily price charts of WIF (39.5%) and BONK (+26%) reveals that Solana’s top two largest meme projects have also experienced significant double-digit gains in May 2024.
SOL Trading Volume Surge Amid Meme coin Frenzy
In recent months, periods of heightened meme coin demand have often triggered substantial SOL price surges, as it essentially boosts Solana network activity. This bullish phenomenon appears to have resurfaced this week.
According to Santiment’s Trading Volume chart, which records the dollar value of all transactions involving SOL during a 24-hour period, Solana’s trading volume reached a monthly low of 936.5 million on May 12. However, since the beginning of the week, Solana has witnessed a considerable uptick in trading activity.
Further intensified by the GameStop-inspired memecoin craze, Solana’s trading volume has already surpassed the $3.61 billion mark at midday on May 17. This reflects an astonishing $2.7 billion surge in trading volume between May 12 and May 17.
Solana Price Forecast: $200 Target on the Horizon
SOL price has gained significant bullish momentum this month, soaring 44% from $126 to a 35-day peak of $170 on May 17. The $2.7 billion surge in trading volume this week suggests that SOL price is poised for another breakout towards the $200 mark in the days ahead.
However, looking at the daily price chart, the $180 area represents a critical short-term resistance level to watch.
