Solana’s SOL price increased by 12.1% from October 11 to 18, reaching $154.79. This upward momentum was primarily driven by demand for memecoins, which boosted trading volume, network fees, and the total value locked (TVL) in the Solana ecosystem.
However, traders are debating whether this memecoin craze is sustainable and whether SOL’s price will continue to benefit from the surge in network activity. Although there is no fundamental reason for the memecoin boom, many influential social media accounts have fueled this interest.
The memecoin Goatseus Maximus (GOAT) reached a market value of $400 million in one week due to rumors of an AI bot launch, even though the bot only promotes the GOAT token on the Pump.fun app.
Other memecoins on the Solana network have also surged in October, with SPX6900 (SPX) up 379%, Apu Apustaja (APU) up 170%, and FWOG up 134%. PUPS and MAGA (TRUMP) also saw gains of over 90%. This growth has garnered significant attention on social media, creating a positive feedback loop.
Solana’s Network Activity Supports Higher SOL Prices
The main question is whether this recent growth will have a significant impact on SOL’s price and Solana compared to its competitors. Solana’s total value locked (TVL) increased by 13% month-over-month, reaching nearly 41 million SOL, while Ethereum and BNB Chain’s TVL remained stable. Notably, Raydium saw a 70% increase in deposits, and Sanctum’s TVL grew by 32% over the past 30 days.
However, to assess the real demand for SOL, on-chain activity must be analyzed. Recently, Solana surpassed Ethereum in network activity, thanks to a surge in trading volume on decentralized exchanges (DEX).
Solana recorded a 43% weekly growth in DEX trading volume, outperforming its competitors, including Ethereum’s Layer 2 solutions. Arbitrum, with a trading volume of $3.74 billion, was still 64% lower than Solana’s $11.16 billion.
While it’s difficult to predict whether the memecoin price surge will continue, data suggests that SOL reaching $180 is a possibility, though only time will tell.
