According to DappRadar, the number of Unique Active Wallets (UAWs) on Solana [SOL] has recorded a staggering spike in the past 24 hours. Decentralized applications including Jupiter, Raydium, and Magic Eden have contributed to the above increase.
TopCryptoNews found that UAW on the Jupiter Exchange aggregator had a count of 307,100, representing a 251% increase. For Raydium, it was a rise to 285,200 while NFT activity increased. Finally, the same number increased to 178% on Magic Eden.
🔸 Memecoin Is Pushing SOL Up And Down
The increase in activity on Raydium and Jupiter may be related to increased memecoin activity in the market. A review of the platforms has revealed that the viral memecoin story can be attributed to GameStop (GME) and legendary trader Keith Gill, popularly known as “Roaring Kitty.”
On June 7, trader-linked derivative tokens appeared in large numbers. Additionally, these Solana-based tokens have skyrocketed to incredible market capitalizations in a short period of time.
This price increase also indicates increased demand for SOL. However, at the time of writing, Solana's price was valued at $162.44, down 5.44% over the past 24 hours.
For many degenerates, the idea of buying memecoins cannot last long. In cryptocurrency, a degenerate refers to an individual who engages in trading highly volatile and speculative tokens without fundamentals. Therefore, when the token reaches a certain level of profit, they will exchange it for the native Solana token and sell it for a stablecoin or fiat currency.
There has been a lot of pumping and dumping like that lately and it probably won't stop any time soon. If so, SOL could continue to move sideways.
🔸 Can Tokens Be Stored on BTC?
On the other hand, increased buying pressure accompanied by high volatility can cause a price breakout. However, from the looks of it, SOL could fall below $160 in the short term.
