#MemeCoinTrending A sharp uptick in solana network activity and the blockbuster performance from memecoins back SOL’s rally toward $180.
Solana's native token, SOL $SOL$158.64, gained 12.1% from Oct. 11 to Oct. 18 and data suggests that the upward momentum was partially driven by demand for #memecoin . Increasing demand translates to higher network volumes, fees, and total value locked (TVL).
Traders are now debating whether the memecoin craze is sustainable and how SOL's price can continue to benefit from the surge in network activity.
While there is no fundamental basis for the surging demand for memecoins, it is clear that influential social media accounts direct traders' attention to the tokens.
Solana network activity supports a higher SOL price
However, the key question is whether this movement significantly impacts SOL’s price, and how the network has performed compared to its competitors. A crucial metric for this analysis is total value locked (TVL), which measures the total funds deposited in the network’s smart contracts.
Solana’s total deposits recently surged to a two-year high, nearing 41 million SOL, up 13% month-over-month. In comparison, Ethereum’s TVL remained flat at 17.7 million ETH $ETH, while BNB Chain’s TVL also stagnated at 7.9 million BNB $BNB.
Highlights on Solana’s network include Raydium, which saw a 70% increase in deposits over the past 30 days, and Sanctum, which gained 32% in TVL.
Measuring deposits is important, but to truly gauge demand for SOL, one must analyze onchain activity. A decentralized exchange (DEX), for example, can record high volumes without necessarily having significant TVL. In this context, Solana's impressive network activity recently secured its position as the leader, surpassing Ethereum over the past week.
Solana's 43% weekly growth in DEX volumes stands out among its direct competitors. Notably, even Ethereum’s layer-2 solutions, which benefit from lower transaction fees, couldn't match Solana’s performance. Arbitrum, for instance, recorded $3.74 billion in weekly volume, still 64% below Solana’s $11.16 billion.
