Is Memecoin the Catalyst Pushing SOL Price Past $180?

Over the past week, memecoin on Solana has been on an impressive rise, acting as a platform to support the SOL token towards the $180 price point.

Specifically, from October 11 to October 18, 2024, SOL increased by 12% to surpass $154. Data shows that the increase is partly due to demand for memecoin.

Traders are debating the sustainability of this memecoin wave and whether SOL price will continue to benefit?

Although not directly affected, memecoin shill posts on X have somewhat impacted the token price.

Take the Goatseus Maximus (GOAT) meme for example. Its market cap skyrocketed to $400M in just one week due to rumors of an AI bot launch.

In fact, this bot is simply promoting the GOAT token, which was launched by Pump.fun. In addition, many other memes saw spikes such as SPX6900 +379%, APU +170%, FWOG +134%

According to Cryptorank, some memes like PUPS or MAGA (TRUMP) also recorded a significant pump momentum of up to 90%.

As this memecoin wave takes off, the media attention on the Solana ecosystem and SOL will benefit, creating a positive feedback loop.

An important indicator to evaluate the performance of a blockchain network is Total value locked (TVL). Solana TVL has increased to an ATH in the past two years, equivalent to 41 million SOL.

Meanwhile, TVL of BNB Chain or Ethereum is still sideways, without any significant changes.

In terms of DEX volume, thanks to memecoin, Solana recorded 43% growth last week, significantly outperforming its competitors, including Ethereum layer 2 (L2).

For example, Arbitrum only reached $3.74 billion in volume, much lower than Solana's $11.16 billion.

Overall, the fundamental analysis factors of the SOL system are very good after the memecoin fomo wave. That will also be the driving force for SOL price growth in the coming time.