Solana Price Passed $170 Thanks to This: Memecoin Wind Is Blowin'

Solana (SOL) price, which rose approximately 5% during the week, climbed back above $170.

According to the founder of a decentralized cryptocurrency exchange, the rise in Solana price is largely due to the memecoin trend.

Memecoin impact is felt

Zeta Markets founder Tristan Frizza said that memecoin transactions on the Solana network are driving the SOL price up.

“Memecoins have definitely become one of the most important drivers of activity in Solana,” Frizza said. “Beyond speculation, this demonstrates Solana’s ability to handle high transaction volumes with low transaction fees, making it a great environment for individual users,” he said.

Blockchain data proves it

According to Frizza, the data on the Solana blockchain proves this statement. The total value of locked assets (TVL) in Solana exceeded $4.9 billion.

“This shows strong activity on the network, and the number of active users is constantly growing, with the number of monthly active addresses breaking a record increasing to 41.65 million in May,” Frizza said.

Coming behind Ethereum

Lending, liquid staking transactions and persistent futures markets on Solana show that the DeFi ecosystem on the network continues to grow. On the one hand, Solana continues to chase Ethereum.

“The growth in Solana can be explained by the advantages it has over other blockchains in terms of transaction capacity per second and scalability,” Bitfinex analysts said. Both Solana and Ethereum continue to grow, but the growth in Solana is more noticeable, and although Solana is four places behind Ethereum in terms of TVL, it is second in terms of decentralized exchange volumes .”