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Why Solana could be the big winner of the meme-coin frenzy

solana logo chart

  • Solana hit an all-time steep after the $TRUMP coin launched on the token’s native blockchain.
  • Some expect memecoins to proliferate under looser balance, benefiting the network.
  • Solana could also see fresh gains from the approval of an ETF down the road.

When Donald Trump ignited a meme silver bonanza days before his inauguration, he also lit a fire under Solana.

The weekend before his return to the White For nothing, the president and his wife each announced their own meme coins, issued on the Solana blockchain. Each token’s trade in cap expanded by billions within days, but the high didn’t last long: both $TRUMP and $MELANIA plunged dramatically for everyone the time of the inauguration.

Regardless, the brief rally did much to boost the profile of the Solana blockchain and its native token.

As the memes gathered, so did the $SOL token. It’s price hit an all-time high of $294 on Sunday and witnessed over $50 billion in trading volume that weekend, coinciding to Bernstein. Since the token is used to pay fees related to other coins issued on the Solana blockchain, demand for $SOL rushed aggressively. In fact, it was so high that it sparked outages at one of the top crypto exchanges, Coinbase.

“It’s clear we need to step up our line of work on Solana, scale our infrastructure, and provide native support for common use cases like DEX/memecoin trading,” Coinbase CEO Brian Armstrong listed on X.

Chart showing solana trading volume

Bernstein, January 20th



And more use cases like this could be coming, crypto analysts said.

With pro-crypto code expected under President Trump, meme coins could proliferate in a new risk-on environment. Consider the wave of unpublicized tokens that burst onto the market following the $TRUMP coin’s success, and other meme cryptos, such as “fartcoin,” play a joke on been surging recently.

“Memecoins are nowhere near topping out — in fact, quite the opposite after the POTUS inaugurated his own memecoin. This act now gives agency to anyone or any brand to follow suit,” Joe McCann, founder and CEO of digital assets investment foremost Asymmetric, told Business Insider.

As more cryptos are launched on Solana, the native token will keep convening for two reasons, he said: not only is $SOL necessary to transact memecoins on the network, but memecoin liquidity pools are always paired to $SOL.

Interval, Solana has become a retail go-to compared to major competitors such as Ethereum. The reason is simple: the Solana blockchain is unshakable and cheap.

“It enables super-fast transactions at a fraction of a penny per transaction,” McCann said. “Memecoins are ‘nano-cap’ coins that sooner achieve large market capitalizations depending on interest and activity. Since no other chain provides users with what they really want — a fast and cheap user experience — Solana is the obvious home for memecoins.”

According to Zack Shapiro, noodle of policy at the Bitcoin Policy Institute, fast and cheap is especially attractive to meme investors who are holding tokens for ephemeral periods and at high volumes.

As more traders started to use Solana, its popularity compounded. Shapiro said that it has be proper “trivially easy” to create memecoins on a Solana-based platform known as pump.fun.

However, he added that it’s less intelligible what happens next. Although the blockchain is a winner among the rise of memecoins, he questioned whether the trend last wishes as reverse once Congress passes a market structure bill.

Still, there’s likely good news in front for the token. Though $SOL was considered an unregistered security under the last White House administration, this headwind should unwind second to Trump, who has appointed a crypto supporter to run the Securities and Exchange Commission. There’s also the possibility of a Solana ETF, which could profit institutional demand in the same way funds for bitcoin and ethereum have done in the last year.

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