The Solana economy is currently experiencing a major downturn as the market capitalization of the memecoin market has dipped by 3.4% in the last 24 hours to approximately $11.32 billion. This is followed by a significant decrease in the trading volume as well. The current trading volume of the Solana based memecoin stands at $3.23 billion. The reason for the downfall is being attributed to the recent rug pull of the $LIBRA token, promoted by the Argentine President Javier Milei.
Endorsement by the Argentine President led to a significant surge in the price of the $LIBRA token and it valuation reached approximately $4.5 billion. However, the token’s value plummeted to cents after reaching its peak. This led to a significant loss to the investors and this has raised a concern regarding memecoins and how easily they can be subjected to market manipulation.
Other recent incident involves tech mogul, Elon Musk. On Tuesday, February 11, Elon Musk changed his name on X to Harry Bolz. This led to creation of several memecoins with the name Harry Bolz but Elon Musk got back to his original name and this caused the prices of memecoins named Harry Bolz to crash. One of the coins named Harry Bolz crashed to zero. All of this just highlights the volatile nature of memecoins and the risk that they pose.
Well known memecoins such as Trump Coin, BONK, Pudgy Penguins, POPCAT have experienced dip in the last 24 hours as per CoinGecko.
Solana Price Drops
Since all of these memecoins are based on Solana ecosystem, $SOL is currently trading at $184.53, with a dip of 4.6% in the last 24 hours. Due to the recent Argentine coin scam and the bearish indicators that hover over the $SOL charts, the price of the token is expected to stay below $200 mark. Concerns regarding the functionality and reliability are being raised for the memecoins generated on Solana, particularly on Meteora and Pumpfun.
Moreover, according to various analysts, if Solana recovers and breaks the $209 resistance level, the prices may shoot up to $244. However, if its fails to break the resistance level, the price of the token could further decrease. There is a possibility that the price could decline towards $175 mark.
Resilience Amidst Market Fluctuations
In contrast to the above situation, certain Solana-based memecoins are showing exceptional amount of surge. Tokens such as DUKO, Smol pep, and Kween have experienced a surge of 586.0%, 153.2% and 122.2% in the last seven days as per CoinGecko.
Also Read: Jupiter Calls $LIBRA an Open Secret, Pledges Transparent Future
